Appraisal Assignment Format: Appraisal Report Docs/Appraisal... · 2019-03-02 · Appraisal...

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9330 Vanguard Drive, Suite 201

Anchorage, Alaska 99507

Phone: (907) 929-2226

Fax: (907) 929-2260

Email: [email protected]

www.reliantadvisory.com

Appraisal Assignment

Format: Appraisal Report

Former Fairview Substation

NSA E. 12th Avenue


Latitude: 61°12'37.53'N, Longitude: 149°52'11.63'W

Client Reference Number: NTP 2011RED183

Reliant Reference Number: 16-0380

as of May 3, 2016

Prepared For:

Ms. Tawny Klebesadel MOA Real Estate Department / Heritage Land Bank

mailto:[email protected]

http://www.reliantadvisory.com/

16-0380 Letter of Transmittal Page i



Phone: (907) 929-2226

Fax: (907) 929-2260

Email: [email protected] www.reliantadvisory.com

Letter of Transmittal

May 4, 2016

Ms. Tawny Klebesadel

Office Manager

MOA Real Estate Department / Heritage Land Bank

4700 Elmore Road, 2nd Flr


RE: Former Fairview Substation

NSA E. 12th Avenue


Client Reference Number: NTP 2011RED183

Reliant Reference Number: 16-0380

Dear Ms. Klebesadel:

At your request, an appraisal of the above referenced property has been prepared. The results of the

assignment are presented in Appraisal Report format. Note that the Client has requested a summary format (as

defined in USPAP prior to the 2014-2015 edition), and this report is intended to meet the Client’s requirements

in this regard. The purpose of the assignment is to estimate the market rent of the Fee Simple interest in the

subject real estate in its current As Is condition.

The report will be used by MOA Real Estate Department / Heritage Land Bank (the Client) for internal

decisions, asset management, and possible lease offering and it may not be suitable for other uses. Although

other parties may in some cases obtain a copy of this report, it should not be relied upon by anyone outside of

the intended user(s).

This assignment has been prepared and presented in conformance with the client’s instructions, the current

Uniform Standards of Professional Appraisal Practice (USPAP) as promulgated by the Appraisal Standards

Board of the Appraisal Foundation, as well as the bylaws of the Appraisal Institute.

The subject is a single, vacant lot which has been used in recent years as parking to support a nearby property.

The subject's exterior has been observed, and photographs taken. Market information and data regarding other

similar real estate has been obtained. This data has been analyzed using appropriate techniques and

methodologies necessary to develop a credible and reliable estimate of market rent.

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Anchorage, AK 99507

Phone: (907) 929-2226

Fax: (907) 929-2260



RE: Former Fairview Substation

16-0380 Letter of Transmittal Page ii

As a result of research and analysis, the value estimates for the subject are as follows:

FINAL MARKET RENT ESTIMATE


Property Rights Fee Simple

Condition As Is

Effective Date of Appraisal May 3, 2016

Lease Area Size 6,580 Sq Ft

Rent Escalations Mkt. Adj. / 5Yrs

Tenant Expenses NNN

Final Market Rent Estimate $6,900/Yr.

The value estimates are based on a marketing period of approximately 12 months and an exposure period of

approximately 12 months. The value opinion reported above is qualified by certain assumptions, limiting

conditions, certifications and definitions, which are set forth in the body of the report. This letter is invalid as

an opinion of value if detached from the report, which contains the text, exhibits and Addendum. Thank you

for the opportunity to be of service. If you have any questions, please feel free to call.

Respectfully submitted,

Theodore Jensen, MAI Managing Member

Alaska Certified General - No. 545

Appraisal Institute Member No. 482231

[email protected]




Former Fairview Substation Certification

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Page iii

Certification

The undersigned certify that, to the best of their knowledge and belief:

1. The statements of fact contained in this report are true and correct.

2. The reported analyses, opinions, and conclusions are limited only by the reported assumptions and

limiting conditions, and are their personal, impartial and unbiased professional analyses, opinions, and

conclusions.

3. They have no present or prospective interest in the property that is the subject of this report and no

personal interest with respect to the parties involved.

4. They have no bias with respect to the property that is the subject of this report or to the parties involved

with this assignment.

5. They have not provided a previous service, as an appraiser or in any other capacity, regarding the subject

within the three years prior to accepting this assignment.

6. Engagement in this assignment was not contingent upon their developing or reporting predetermined

results.

7. Compensation for completing this assignment is not contingent upon the development or reporting of a

predetermined value or direction in value that favors the cause of the client, the amount of the value

opinion, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to

the intended use of this appraisal.

8. Analysis, opinions and conclusions were developed, and this report has been prepared, in conformity with

the Uniform Standards of Professional Appraisal Practice.

9. A personal walk-through of the subject property has been made by Mr. Jensen.

10. No one provided significant real property appraisal assistance to the persons signing this certification and

they are competent and qualified to perform the appraisal assignment.

11. The reported analyses, opinions and conclusions were developed, and this report has been prepared, in

conformity with the requirements of the Code of Professional Ethics and Standards of Professional

Appraisal Practice of the Appraisal Institute.

12. The use of this report is subject to the requirements of the Appraisal Institute relating to review by its

duly authorized representatives.

13. As of the date of this report, Theodore Jensen has completed the requirements of the continuing education

program for Designated Members of the Appraisal Institute, and for certified appraisers in the State of

Alaska.

Cer

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Theodore Jensen, MAI

Alaska Certified General No. 545

Former Fairview Substation Table Of Contents

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Table of Contents

LETTER OF TRANSMITTAL .................................................................................................................................. I

CERTIFICATION.................................................................................................................................................... III

TABLE OF CONTENTS ........................................................................................................................................... V

ASSIGNMENT OVERVIEW ................................................................................................................................ - 1 -

IDENTITY OF PROPERTY ........................................................................................................................................ - 1 - Name ............................................................................................................................................................... - 1 - Brief Description ............................................................................................................................................. - 1 - Address ............................................................................................................................................................ - 1 - Geo Coordinates ............................................................................................................................................. - 1 - Physical Location ............................................................................................................................................ - 1 - Assessor’s Tax Parcel Number(s) ................................................................................................................... - 1 - Abbreviated Legal Description ....................................................................................................................... - 1 - Current Use ..................................................................................................................................................... - 1 - Appraised Use ................................................................................................................................................. - 1 - Highest and Best Use ...................................................................................................................................... - 1 -

SCOPE OF ASSIGNMENT ........................................................................................................................................ - 1 - Value Definition(s) .......................................................................................................................................... - 1 - Other Definitions............................................................................................................................................. - 2 - Purpose ........................................................................................................................................................... - 2 - Intended Use of Appraisal ............................................................................................................................... - 2 - Intended User(s) of Appraisal ......................................................................................................................... - 2 - Property Interest Appraised ............................................................................................................................ - 2 - Property Rights Appraised .............................................................................................................................. - 2 - Report Presentation ........................................................................................................................................ - 2 - Inspection Date ............................................................................................................................................... - 3 - Effective Date .................................................................................................................................................. - 3 - Report Date ..................................................................................................................................................... - 3 -

SCOPE OF WORK ................................................................................................................................................... - 3 - Overview ......................................................................................................................................................... - 3 - Limitations to Scope of Work .......................................................................................................................... - 3 - Compliance ..................................................................................................................................................... - 3 - Assignment Presentation ................................................................................................................................. - 3 - Subject Walk Through ..................................................................................................................................... - 3 - Information Provided to Appraiser for Consideration .................................................................................... - 4 - Market Analysis............................................................................................................................................... - 4 - Approaches to Value ....................................................................................................................................... - 4 - Valuation Process ........................................................................................................................................... - 4 -

OWNERSHIP AND SALES INFORMATION ................................................................................................................ - 5 - Current Owner of Record................................................................................................................................ - 5 - Three Year Transaction History ...................................................................................................................... - 5 -

EXTRAORDINARY ASSUMPTIONS, LIMITING CONDITIONS & SPECIAL RISK FACTORS .......................................... - 5 - HYPOTHETICAL CONDITIONS ................................................................................................................................ - 6 - COMPETENCY OF APPRAISER ................................................................................................................................ - 6 -

AREA DATA .......................................................................................................................................................... - 7 -

REGIONAL AREA DATA ........................................................................................................................................ - 7 - LOCAL AREA DATA .............................................................................................................................................. - 9 - DEMOGRAPHIC DATA EXHIBIT ........................................................................................................................... - 12 -

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NEIGHBORHOOD DATA ....................................................................................................................................... - 13 - Name ............................................................................................................................................................. - 13 - Location & Access ........................................................................................................................................ - 13 - Overview ....................................................................................................................................................... - 13 - Character & Land Uses ................................................................................................................................ - 13 - Typical Age of Improvements ........................................................................................................................ - 13 - Percent Land Developed ............................................................................................................................... - 13 - Life Cycle ...................................................................................................................................................... - 13 - New Construction .......................................................................................................................................... - 13 - Trends ........................................................................................................................................................... - 14 -

CONCLUSION ...................................................................................................................................................... - 14 - Conclusion .................................................................................................................................................... - 14 -

IMPACT OF LOW OIL PRICES ............................................................................................................................ - 15 - Current Conditions ....................................................................................................................................... - 15 -

IMMEDIATE NEIGHBORHOOD AERIAL PHOTOGRAPH .......................................................................................... - 16 - IMMEDIATE NEIGHBORHOOD PHOTOGRAPHS ..................................................................................................... - 17 -

DESCRIPTION OF SITE .................................................................................................................................... - 19 -

DESCRIPTION OF SITE ......................................................................................................................................... - 19 - Name ............................................................................................................................................................. - 19 - Address .......................................................................................................................................................... - 19 - Geo Coordinates ........................................................................................................................................... - 19 - Physical Location .......................................................................................................................................... - 19 - Assessor’s Tax Parcel Number(s) ................................................................................................................. - 19 - Abbreviated Legal Description ..................................................................................................................... - 19 - Gross Site Area ............................................................................................................................................. - 19 - Shape ............................................................................................................................................................. - 19 - Street Frontage ............................................................................................................................................. - 19 - Access ............................................................................................................................................................ - 19 - Exposure ....................................................................................................................................................... - 19 - Adjacent Land Uses / Businesses .................................................................................................................. - 19 - Topography ................................................................................................................................................... - 20 - Soil Conditions .............................................................................................................................................. - 20 - Wetlands ........................................................................................................................................................ - 20 - Hazardous Conditions ................................................................................................................................... - 20 - Flood Zone .................................................................................................................................................... - 20 - Earthquake Zone ........................................................................................................................................... - 20 - Utilities .......................................................................................................................................................... - 20 -

AERIAL PHOTOGRAPH EXHIBIT .......................................................................................................................... - 21 - GRID MAP EXHIBIT............................................................................................................................................. - 22 -

Zoning ........................................................................................................................................................... - 23 - Easements, Covenants, Encroachments & Restrictions ................................................................................ - 24 - Site Improvements ......................................................................................................................................... - 24 - Functional Utility .......................................................................................................................................... - 24 -

PROPERTY ASSESSMENT & TAXES ............................................................................................................ - 25 -

SUMMARY OF PROPERTY ASSESSMENT & TAXES ............................................................................................... - 25 - Real Property ................................................................................................................................................ - 25 -

SUBJECT PHOTOGRAPHS .............................................................................................................................. - 27 -

HIGHEST & BEST USE ..................................................................................................................................... - 29 -

DEFINITION & METHODOLOGY ........................................................................................................................... - 29 - Scope of Highest & Best Use ........................................................................................................................ - 29 -


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AS VACANT ........................................................................................................................................................ - 29 - Legally Permissible ....................................................................................................................................... - 29 - Physically Possible ....................................................................................................................................... - 29 - Financially Feasible ..................................................................................................................................... - 29 - Maximally Productive ................................................................................................................................... - 29 -

PROBABLE BUYER .............................................................................................................................................. - 30 -

LAND VALUATION ........................................................................................................................................... - 31 -

INTRODUCTION ................................................................................................................................................... - 31 - Methodology ................................................................................................................................................. - 31 - Units of Comparison ..................................................................................................................................... - 31 -

COMPARABLE DATA ........................................................................................................................................... - 31 - Sources of Data ............................................................................................................................................. - 31 - Availability of Data ....................................................................................................................................... - 31 - Presentation of Data ..................................................................................................................................... - 31 -

SUMMARY OF COMPARABLE LAND SALES EXHIBIT ........................................................................................... - 32 - MAP OF COMPARABLE LAND SALES EXHIBIT ..................................................................................................... - 33 - DESCRIPTION OF DATA ....................................................................................................................................... - 34 -

Sale No. L-1 .................................................................................................................................................. - 34 - Sale No. L-2 .................................................................................................................................................. - 35 - Sale No. L-3 .................................................................................................................................................. - 36 - Sale No. L-4 .................................................................................................................................................. - 36 - Sale No. L-5 .................................................................................................................................................. - 37 - Sale No. L-6 .................................................................................................................................................. - 38 - Sale No. L-7 .................................................................................................................................................. - 39 -

OVERVIEW OF ADJUSTMENTS ............................................................................................................................. - 39 - Nature of Adjustments ................................................................................................................................... - 39 - Usable Land Area ......................................................................................................................................... - 39 - Property Rights Conveyed ............................................................................................................................. - 39 - Financing Terms ........................................................................................................................................... - 40 - Conditions of Sale ......................................................................................................................................... - 40 - Market Conditions ......................................................................................................................................... - 40 - Location ........................................................................................................................................................ - 40 - Size ................................................................................................................................................................ - 40 - Shape ............................................................................................................................................................. - 41 - Use / Zoning .................................................................................................................................................. - 41 - Other ............................................................................................................................................................. - 41 -

ADJUSTMENT GRID EXHIBIT ............................................................................................................................... - 42 - DISCUSSION & ANALYSIS AFTER ADJUSTMENT ................................................................................................. - 43 - FEE SIMPLE LAND VALUE CALCULATION .......................................................................................................... - 44 - GROUND RENT ANALYSIS .................................................................................................................................. - 44 -

Overview ....................................................................................................................................................... - 44 - Ground Lease Returns .................................................................................................................................. - 44 -

FINAL VALUE ESTIMATE .................................................................................................................................... - 46 - EXPOSURE PERIOD .............................................................................................................................................. - 46 - MARKETING TIME .............................................................................................................................................. - 46 -

GENERAL ASSUMPTIONS & LIMITING CONDITIONS ........................................................................... - 47 -

TERMS & DEFINITIONS .................................................................................................................................. - 55 -

ADDENDUM: LETTER OF ENGAGEMENT ................................................................................................ - 59 -

ADDENDUM: EXPERIENCE DATA ............................................................................................................... - 61 -

Former Fairview Substation Assignment Overview

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Assignment Overview

Identity of Property

Name Former Fairview Substation

Brief Description The subject is a single, vacant lot which has been used in recent years as parking

to support a nearby property.

Address NSA E. 12th Avenue


Geo Coordinates Latitude: 61°12'37.53'N, Longitude: 149°52'11.63'W

Physical Location The subject is located on the south side of 12th Avenue between Gambell and

Hyder Streets, which is within the Fairview neighborhood just southeast of

downtown.

Assessor’s Tax Parcel

Number(s)1

002-131-41

Abbreviated Legal

Description

West 47' of Lot 3, Block 18D, Third Addition of Anchorage Townsite,

Anchorage Recording District, Third Judicial District, State of Alaska,

according to Plat C-10A. (Per Department of Natural Resources

Records)

Current Use Vacant Land

Appraised Use Vacant Land

Highest and Best Use

AS VACANT May include development as retail, auto-retail, restaurant, office or other

unidentified use once feasibility has been ascertained. Parking and yard storage

would be a likely interim use, as has been the case historically.

Scope of Assignment

Value Definition(s) The following definition(s) of value is/are utilized in this report:

MARKET RENT2 The most probable rent that a property should bring in a competitive and open

market reflecting the conditions and restrictions of a specified lease agreement,

including the rental adjustment and revaluation, permitted uses, use restrictions, expense obligations, term, concessions, renewal and purchase options, and tenant

improvements (TIs).

1 Per Tax Assessor Records. 2 Source: The Dictionary of Real Estate Appraisal, Sixth Edition, Chicago: Appraisal Institute, 2015.

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Other Definitions Please refer to the Terms & Definitions section presented in the Addenda for

additional definitions of significant terminology used in this report.

Purpose To estimate the market rent of the real estate in its current As Is condition.

Intended Use of

Appraisal

The intended use of the appraisal is for internal decisions, asset management, and

possible lease offering, and it may not be suitable for other uses.

Intended User(s) of

Appraisal

MOA Real Estate Department / Heritage Land Bank (the Client)

Property Interest

Appraised

This is an appraisal of the real property. Any intangible and personal property is

specifically excluded from this valuation.

Property Rights

Appraised

Fee Simple

Report Presentation Appraisal Report (the level of reporting herein is intended to meet the Client’s requirements, consistent with a summary format as defined in USPAP prior to the

2014-15 edition)

APPRAISAL REPORT /

SUMMARY REPORT

Prior to the 2014-2015 edition of the Uniform Standards of Professional Appraisal

Practice (USPAP), USPAP specified two primary narrative reporting formats:

Summary or Self-Contained. Subsequent editions of USPAP replaced these with

the Appraisal Report, a narrative format that is intended to provide minimum

reporting standards. Standard 2-2(a) of current USPAP states the following: “The

content of an Appraisal Report must be consistent with the intended use of the

appraisal and at a minimum…

(iii) summarize information sufficient to identify the real estate involved in the appraisal, including the physical, legal, and economic property characteristics

relevant to the assignment…

(vii) summarize the scope of work used to develop the appraisal…

(viii) summarize the information analyzed, the appraisal methods and techniques employed, and the reasoning that supports the analyses, opinions, and

conclusions; exclusion of the sales comparison approach, cost approach, or

income approach must be explained;

Comment: An Appraisal Report must include sufficient information to indicate

that the appraiser complied with the requirements of Standard I. The amount of detail required will vary with the significance of the information to the appraisal.

The appraiser must provide sufficient information to enable the client and intended users to understand the rationale for the opinions and conclusions,

including reconciliation of the data and approaches, in accordance with

Standards Rule 1-6.”

In essence, the Appraisal Report format is consistent with the Summary appraisal

format described in the 2012-2013 and prior editions of USPAP under Standards

Rule 2-2(b).


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Inspection Date May 3, 2016

Effective Date May 3, 2016

Report Date May 4, 2016

Scope of Work

Overview Current USPAP requires the appraiser(s) to develop and report a scope of work

that results in credible results that are appropriate for the appraisal problem,

intended user(s) and intended use.

Limitations to Scope of

Work

USPAP permits limitations to the scope of work consistent with the appraisal

problem, intended user and intended use. The scope of work has been limited by

the General Assumptions & Limiting Conditions, Extraordinary Assumptions,

Extraordinary Limiting Conditions and Hypothetical Conditions discussed in the

report and Addenda. The Scope of Work has also been limited based on the level

of information / documentation available to the appraiser. Please reference the

extraordinary assumptions and limiting and hypothetical conditions presented later

in this section. There are no other major limitations to the scope of work for this

assignment.

Compliance The analysis and reporting of this assignment is compliant with the following:

Uniform Standards of Professional Appraisal Practice (USPAP) as

promulgated by the Appraisal Standards Board of the Appraisal

Foundation.

The bylaws of the Appraisal Institute.

Client appraisal standards as set forth in the letter of engagement

presented in the Addendum.

Assignment

Presentation

This is an Appraisal Report as defined by the Uniform Standard of Professional

Appraisal Practice under Standards Rule 2-2(a). This format provides a summary

of the appraisal process, subject data and valuation. The level of detail and

discussion included varies with the significance of the information to the

appraisal, within the context of the intended use and intended user(s). Note that

the Client has requested a summary format (as defined in USPAP prior to the

2014-2015 edition), and this report is intended to meet the Client’s requirements in

this regard.

This is a two-sided document with new sections beginning on odd numbered

pages. Note, where a section ends on an odd page Microsoft Word will

automatically insert a blank, even numbered page at the end of a section.

Subject Walk Through The subject's exterior has been observed, and photographs taken. The scope of

this walk-through is presented on the following table.

SCOPE OF WALK THROUGH

Item Viewed?

Neighborhood Yes

Subject Exterior Yes


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Information Provided

to Appraiser for

Consideration

Primary data was obtained by the appraiser during the property walk-through.

Secondary sources of property data include client, borrower, and public records.

The scope of work is specific to the information on the subject provided to the

appraiser by the client or property contact. A partial list of items provided

follows:

Legal description and Assessor parcel number

Plat and grid maps

The following information was not available to the appraiser:

As built

Title report

Copies of lease or rental documents

Environmental study

A prior appraisal

Market Analysis Extensive research on macro and micro economic conditions within the subject’s

market has been conducted. Extensive research on current market conditions

within the subject’s sector of the real estate market has been conducted. The

Appraisal Institute recognizes two categories of market analysis: inferred and

fundamental. Inferred analyses (Level A and B) are basic methods by which

future supply and demand conditions are inferred by current and general market

conditions (secondary data). In fundamental analyses (Level C and D), general

information is supplemented by detailed data in order to forecast supply and

demand, as well as subject-specific absorption and capture (primary data). The

market analysis performed in this assignment is based on inferred demand.

Approaches to Value

LAND VALUATION This approach was developed because it is necessary to develop a credible and

reliable estimate of market value for this property type or it has been requested by

the client.

DIRECT RENTAL COMPARISON

Direct comparison is the preferred method for estimating market rent, provided

adequate comparable data is available for analysis. In this case, direct comparison

was not feasible or appropriate, at the local market does not typically evaluate

ground rent in this manner (that is, on a $/sq ft basis). Instead, an appropriate,

market-derived rate of return was applied to the concluded fee simple land value

for an indication of market rent.

Valuation Process The valuation process may include research and analysis performed as part of a

prior assignment, as well as new research performed specifically for this

assignment, and included but was not limited to the following:

1. The problem or nature of assignment was identified.

2. A scope of work was created that lead to credible results that are appropriate

for the appraisal problem, intended user and intended use.

3. Information necessary to complete the assignment was requested and


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obtained from the client / property contact.

4. An area, city and neighborhood analysis has been performed.

5. An analysis of the subject’s physical and economic characteristics has been

performed.

6. Interviews have been performed with property representatives (owners,

property managers or leasing agents), brokers, investors, developers and

other individuals that might have useful knowledge and insight on the

subject.

7. Knowledgeable market participants have been interviewed on the market

conditions for properties similar to the subject.

8. An examination of current zoning codes affecting the property has been

performed.

9. The functional utility of the site has been determined.

10. A detailed examination of the subject’s economic characteristics has been

made to determine the property’s risk profile and economic potential.

11. A highest and best use analysis for the property was performed.

12. Extensive research to identify transactions involving similar properties was

performed.

13. An analysis of the subject and available data was performed using commonly

accepted valuation techniques and methodologies.

14. The quantity and quality of available data was considered along with the

applicability of the methodology used, and a reconciliation was performed to

arrive at the final value estimate(s).

Ownership and Sales Information

Current Owner of

Record

According to Tax Assessor Records, the subject is presently owned by

Municipality of Anchorage.

Three Year

Transaction History

Disclosure and analysis of the subject’s transaction history (sales, agreements of

sale, options, and listings) within the prior three years is required by USPAP and,

if applicable, is presented below.

NO RECENT ACTIVITY

No transactions involving the subject within the prior three years are known or

have been disclosed. A search of State of Alaska Department of Natural Resource

records indicates that the subject has not changed ownership within the last three

years.

Extraordinary Assumptions, Limiting Conditions & Special Risk Factors

Extraordinary assumptions, extraordinary limiting conditions and special risk

factors specific to this assignment follow. The value estimate(s) presented in this


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report may be amended in the event that the extraordinary assumptions or limiting

conditions are found to be false. The reader is advised that the use of these

assumptions might have affected the assignment results.

1. According to the Client, this site was formerly used as a utility substation.

The substation was decommissioned at an unknown point and neither the

Client nor the Technical Service Superintendent has any specific knowledge

of the decommissioning. Given this past use, it is possible the site is

impacted by PCBs or other hazardous materials, although, again, no specific

information is available. Although requested, no environmental reports were

provided for this assignment. It is an extraordinary assumption of the

appraisal that the property is free and clear of any hazardous materials or

environmental contamination. An engineer or other appropriate expert

should be contacted if more information is required on this potential issue.

Hypothetical Conditions

Hypothetical conditions specific to this assignment are as follows. The reader is

advised that the use of these hypothetical conditions (if any) might have affected

the assignment results.

This appraisal is not predicated on any hypothetical conditions.

Competency of Appraiser

The appraisers have previously performed similar assignments and meet the

Competency Rule of USPAP. Please refer to the Experience Data presented in the

Addendum for further information on the appraiser’s background and experience.

Former Fairview Substation Area Data

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Area Data

Regional Area Data

Whereas the nation lost 7.5 million wage and salary jobs from December 2007 to

June 2009 (the official dates of the “Great Recession”), the Alaskan economy

actually made modest gains. State economists attribute this stark result to

differences in the structure of the Alaskan economy. Chief among these are

Alaska’s large natural resource base, the lack of a significant manufacturing

sector, strong federal spending, a growing health care industry, and a resilient

tourism industry. In recent years, Alaska benefited from rapid growth in

developing countries that resulted in an undersupply of commodities, placing

upward pressure on prices.

Alaska is highly dependent on the production and price of oil, and while

production has steadily decreased from a high in the late 1980s, the price has been

volatile. Between 2013 and early 2014, oil showed stability above $95/barrel.

Though the problem of low production remained (and remains) a longer-term

concern, these oil prices provided bountiful revenue to Alaska at a time when

many other states were struggling with crippling budget deficits. However, due

primarily to a glut of new supply from the U.S. and some decreases in global

demand, prices began to slide in mid-2014. Currently, Alaskan crude stands at

roughly $30 per barrel. Should prices remain this low, the state government will

face a revenue shortfall of $3 billion and substantial budget-tightening (or

additional revenue sources) will presumably follow. Fortunately, the new More

Alaska Production Act (MAPA, upheld by voters in August 2014) brings in

somewhat more revenue to the state than did the prior ACES tax structure at these

lower prices. Moreover, the state has roughly $10 billion in budget reserves

which can offset revenue shortfalls for nearly three years without budget cuts.

The State also has $52 billion within the Permanent Fund, which while not legal

for lawmakers to spend without amending the State constitution (requiring a

2/3rds majority vote), does suggest a strong balance sheet. That said, the State has

700 fewer full-time positions as of December 2015 than it did in December 2014.

The pressure on the State’s budget is obvious, as reflected by recent downgrading

of its credit outlook to “negative” by both Moody’s and Standard & Poor’s (which

also downgraded its rating from AAA to AA+). Ultimately, the full impact of

lower oil prices will not be known until more clarity is available regarding the

period of time these prices are likely to persist.

Looking to the future, the state awaits progress in the development of a proposed

natural gas pipeline that would provide a significant boost to the economy. A

number of options are currently being discussed, including route, pipeline

diameter, and level of State ownership. The likelihood and timing of an LNG

pipeline remain uncertain. With respect to offshore drilling, Royal Dutch Shell’s

recent experience and subsequent decision to pull-out of Alaska for the

foreseeable future likely means there is little near-term prospect for exploration by

other firms in the Arctic waters as well. Beyond oil and gas, the state economy

continues to benefit from a confluence of strong production and stable prices for

several other natural resources (minerals and seafood).

Are

a D

ata


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Also buttressing the Alaskan economy is the level of federal spending in the state.

For example, in FY2010, the U.S. government sent a total of $15 billion to Alaska

and its residents. This sum made Alaska the highest recipient of per capita federal

dollars for the year. The level of federal spending has decreased in subsequent

years, but the state's amount per-capita is still thought to be roughly 40% above

the national average. Meanwhile, job gains in the health care industry have been

consistent and strong for most of the last decade. According to the Alaska

Department of Labor, the health care industry added 500 jobs in 2015, and it is

expected to add another 500 jobs in 2016. Lastly, after down years in 2009 and

2010, tourism leveled out and then experienced more noticeable improvement in

2012 through 2015. State economists expect that the combination of a

strengthening national economy and the addition of several cruise ships to the

Alaskan market will continue to provide a boost for this important industry.

Historic employment changes, as well as the forecast for 2016 are presented in the

following chart:

According to state economists, Alaska has significantly outperformed the nation’s

economy as a whole during the past decade. After the minor losses in 2009 ended

21 straight years of overall job growth, Alaska has gained jobs every year since.

That said, growth was modest in both 2014 and 2015. Employment gains in 2015

were seen in the leisure and hospitality trade, construction and oil and gas sector,

among others. Federal government in 2015 remained flat, state government

experienced a loss of 2.6% of its workforce, while local government lost 0.7%.

The outlook for 2016 is a minor loss of jobs directly tied to low oil prices. Health

care and the leisure and hospitality industries should lead the way in overall job

gains while most other industries will likely decline slightly or remain flat. The

only other sectors expected to grow slightly are retail and manufacturing. In


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summary, the Alaska economy remains healthy and stable at this time, although

there is clearly nervousness stemming from low oil prices and State government

budget pressures.

Local Area Data

Anchorage is located in Southcentral Alaska. It is the largest city in Alaska and is

home to over 40% of the state’s population. As the state’s economic hub, the

local economy benefits from its substantial commerce with other communities

throughout Alaska. Major economic influences include trade, transportation, and

utilities (21% of employment), government (18%), education and health services

(16%), and professional and business services (12%). The oil and gas industry

comprises less than 2% of employment - although its total impact is certainly

more significant than that figure would imply. Per capita income levels in

Anchorage are among the highest in the state, while unemployment is generally

less seasonal and lower overall.

After shedding jobs and ending a 20-year streak of employment growth in 2009,

the Anchorage economy gained 500 jobs in 2010. Contrasted with the nation as a

whole, which lost 6% of its wage and salary jobs during the official dates of the

recession, the Anchorage economy lost less than a mere 1% in 2009. Similar to

the state of Alaska, 2011 through 2013 built upon the minor growth of 2010.

Though the employment gains seen in 2013 were less than that of 2012, modest

job growth was still seen in this year as well. A net loss of jobs was seen in 2014,

at -0.5%, and a small gain of 0.4% was seen in 2015. Among industries

experiencing gains in 2015 were educational and health services, leisure and

hospitality, and retail trade. Conversely, manufacturing, financial activities, and

federal and state government lost a relatively modest number of jobs. Data

released by the Alaska Department of Labor indicates that the average monthly

unemployment rate in Anchorage during 2015 was 5.3%, which is a relatively

healthy rate by historical standards and slightly below the national average of

5.4%. Historic employment changes as well as the forecast for 2016 are presented

in the following chart:


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The Alaska Department of Labor projects a year of minor job losses in Anchorage

for 2016. Among the industries forecast to experience growth are educational and

health services, and leisure and hospitality. Meanwhile, those forecast to shed

jobs are state government, natural resources and mining, construction and

professional and business services.

A recent summary of Anchorage, according to Moody’s Analytics: “Anchorage’s

expansion is losing steam, but the resilient energy and white-collar services

industries are limiting the severity of the slowdown. The large public sector is

declining thanks to decreased federal funding and local government layoffs.”

That said, the metro area is anchored by two large military bases, and as Alaska’s

economic hub, it benefited from the federal stimulus - of which the state was the

largest recipient on a per capita basis. Moody’s also observes that it has a

relatively diverse economy, serves as the transportation gateway to Alaska, offers

an educated workforce, and is seeing an expanding population. Taken together,

the Anchorage economy is currently stable and healthy, though it is anticipated to

experience modest job loss in the upcoming year. As with Alaska as a whole,

there is obviously concern stemming from low oil prices and subsequent revenue

shortfalls at the state government level. For comparison, detailed demographics

for Alaska’s major cities are presented on the Demographic Data Exhibit on the

following page.


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Demographic Data Exhibit

Anchorage Municipality Fairbanks North Star Juneau Ketchikan Gateway Matanuska-Susitna Alaska United States

Summary 2010 2015 2020 2010 2015 2020 2010 2015 2020 2010 2015 2020 2010 2015 2020 2010 2015 2020 2010 2015 2020

Population 291,826 301,202 312,101 97,581 103,197 107,546 31,275 33,392 35,384 13,477 13,712 13,916 88,995 97,117 105,918 710,231 741,123 773,619 308,745,538 318,536,439 330,622,575

Households 107,332 111,338 115,631 36,441 38,853 40846 12,187 13,130 14,023 5,305 5,445 5,543 31,824 35,047 38,423 258,058 271,419 284,770 116,716,292 120,746,349 125,477,562

Families 70,544 72,640 75,093 23,726 25,106 26,267 7,742 8,278 8,797 3,369 3,430 3,475 22,579 24,712 26,987 170,750 178,364 186,373 77,538,296 79,691,683 82,498,212

Average Household Size 2.64 2.63 2.63 2.56 2.54 2.52 2.49 2.48 2.46 2.49 2.47 2.46 2.75 2.73 2.72 2.65 2.63 2.62 2.58 2.57 2.57

Owner Occupied HUs 64,285 65,138 67,691 21,410 22,432 23,638 7,590 8,037 8,583 3,076 3,118 3,182 24,181 26,373 28,916 162,765 168,584 177,360 75,986,074 76,019,723 78,734,306

Renter Occupied HUs 43,047 46,200 47,940 15,031 16,421 17,208 4,597 5,093 5,440 2,229 2,327 2,361 7,643 8,674 9,507 95,293 102,835 107,410 40,730,218 44,726,626 46,743,256

Median Age 33.0 33.7 34.4 31.2 32.4 33.6 38.0 38.5 38.3 38.3 39.1 39.7 34.8 35.6 36.1 33.9 34.6 35.3 37.1 37.9 38.6

Trends: 2015-2020 Annual Rate

Population 0.71% 0.83% 1.17% 0.30% 1.75% 0.86% 0.75%

Households 0.76% 1.01% 1.32% 0.36% 1.86% 0.96% 0.77%

Families 0.67% 0.91% 1.22% 0.26% 1.78% 0.88% 0.69%

Owner HHs 0.77% 1.05% 1.32% 0.41% 1.86% 1.02% 0.70%

Median Household Income 2.39% 3.61% 2.65% 2.94% 2.31% 2.77% 2.66%

Households by Income Number Percent Number Percent Number Percent Number Percent Number Percent Number Percent Number Percent

< $15,000 6,654 6.0% 2,968 7.6% 652 5.0% 306 5.6% 2,400 6.8% 19,874 7.3% 15,400,466 12.8%

$15,000 - $24,999 7,765 7.0% 2,873 7.4% 481 3.7% 364 6.7% 2,021 5.8% 19,767 7.3% 12,433,476 10.3%

$25,000 - $34,999 7,267 6.5% 3,048 7.8% 896 6.8% 609 11.2% 1,804 5.1% 20,164 7.4% 12,393,437 10.3%

$35,000 - $49,999 13,434 12.1% 5,462 14.1% 1,410 10.7% 609 11.2% 3,318 9.5% 32,624 12.0% 16,288,264 13.5%

$50,000 - $74,999 20,333 18.3% 7,820 20.1% 2,202 16.8% 1,297 23.8% 7,346 21.0% 51,353 18.9% 21,288,338 17.6%

$75,000 - $99,999 15,554 14.0% 5,155 13.3% 2,936 22.4% 922 16.9% 5,917 16.9% 41,226 15.2% 15,085,777 12.5%

$100,000 - $149,999 21,513 19.3% 7,061 18.2% 2,628 20.0% 727 13.4% 7,763 22.2% 48,689 17.9% 15,564,784 12.9%

$150,000 - $199,999 10,088 9.1% 2,481 6.4% 1,060 8.1% 288 5.3% 2,847 8.1% 21,319 7.9% 6,172,851 5.1%

$200,000+ 8,730 7.8% 1,985 5.1% 865 6.6% 323 5.9% 1,631 4.7% 16,402 6.0% 6,117,224 5.1%

2000 2015 2020 2000 2015 2020 2000 2015 2020 2000 2015 2020 2000 2015 2020 2000 2015 2020 2000 2015 2020

Median Household Income $55,401 $75,257 $84,700 $49,145 $63,870 $76,264 $61,862 $80,932 $92,242 $51,088 $63,500 $73,393 $51,062 $76,972 $86,265 $51,581 $69,682 $79,881 $42,164 $53,217 $60,683

Average Household Income $67,906 $96,173 $108,061 $58,561 $83,381 $94,654 $69,983 $96,014 $109,216 $61,519 $83,796 $96,449 $59,782 $90,172 $100,967 $62,475 $88,585 $99,528 $56,644 $74,699 $84,910

Per Capita Income $25,287 $36,279 $40,753 $21,553 $32,522 $37,055 $26,719 $38,085 $43,602 $23,994 $33,532 $38,675 $21,105 $32,899 $36,962 $22,660 $33,111 $37,289 $21,587 $28,597 $32,501

Source: STDB Online

Adversity Index http://www.msnbc.msn.com/id/29976394/ns/business-stocks_and_economy/

2015 20152015 20152015 2015 2015


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Neighborhood Data

Name East Downtown Anchorage / Fairview

Location & Access The neighborhood is located southeast of the Anchorage Central Business District

(CBD) proper, within the Fairview residential neighborhood. The neighborhood

location and access / linkages are shown on the street and aerial photos that

follow. Neighborhood access is considered typical of the market.

Overview The subject is located at the far edge of Downtown Anchorage. In general terms,

Downtown Anchorage is the civic, tourist, artistic, and cultural center of

Anchorage. Some of Anchorage’s most prestigious office locations are found

downtown. Surrounding this professional aspect of Downtown are a wide variety

of bars, restaurants, hotels, shopping destinations and tourist activities, which

make Downtown appealing to a wide variety of real estate market segments.

Beyond the edge of downtown proper are a wide array of uses, including auto-

retail, light industrial, single-family and multi-family residential.

Character & Land

Uses

The neighborhood character is demonstrated by the neighborhood photos that

follow. These photos were taken within close proximity to the subject and are

representative of the character of the neighborhood. As with most of Alaska and

Anchorage, neighborhood land uses are mixed. Major streets are developed

predominantly with office, retail, auto dealerships, and other commercial uses

while interior streets are developed with a combination of commercial, light

industrial, older residential and yard storage.

Typical Age of

Improvements

Most construction in the immediate vicinity (east downtown) occurred in the

1960s through 1970s. New construction has occurred only sporadically since that

time. In the primary downtown area, more significant construction has occurred

so much of the product is incrementally newer than that of east downtown.

Percent Land

Developed

Roughly 90%+

Life Cycle Mature / Revitalization

This is an established neighborhood. Older improvements continue to be

periodically renovated, converted to new uses, or demolished to make way for

more intensive uses. In fact, downtown parcels – admittedly those closer to the

CBD – are typically bought and sold based on underlying land value, with little if

any contributory value assigned to older residences and other such under-

improvements.

New Construction The immediate neighborhood surrounding the subject consists of a mix of older

residential and commercial uses. At the southeastern fringe of Downtown, it is

situated between the commercial neighborhood along 5th / 6th Avenues and the

Fairview residential neighborhood to the east. Renovation of older buildings is

occurring sporadically here. A significant development in the last few years was

the complete renovation of the old Mackay Building, which had stood derelict for

decades. This building was renovated and converted into apartments and assisted

living, and is now known as McKinley Tower. The adjacent Annex Building was

also renovated and converted to office, now known as the JGB Memorial building.


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In addition, Sullivan Manor, a senior housing facility, was developed to the east of

McKinley Tower in 2005. The former Holiday Inn at 4th Avenue and C Street was

converted to 200 units of multifamily residential (roughly half of which are set

aside as affordable housing) in early 2013, and it is now known as The Lofts.

A 33,000 sq ft low-rise office building on the corner of Cordova and 4th Avenue

was completely renovated prior to the building’s recent signing of a long-term

lease with The State of Alaska. A new fire station was constructed at 4th Avenue

and A Street in 2000.

In the greater Downtown area, the Anchorage Museum, located at 6th Avenue and

A Street, just underwent a $116 million expansion. The 80,000 sq ft addition

includes a planetarium and theatre; a large open-air common featuring outdoor

galleries and an outdoor ice-skating rink; new galleries and shops; the Arctic

Studies Center, which will contain some 600 artifacts; and numerous activities

designed to engage families and children.

The 210,000 sq ft Dena’ina Civic and Convention Center, located at 7th Avenue

and G Street, opened to the public in Fall 2008. The $111 million project will

allow Anchorage to host large conventions or multiple mid-sized conventions and

is anticipated to increase visitor volumes in Anchorage. The $44 million Linny

Pacillo Parking Garage, located across the street from Dena’ina on 7th Avenue and

F Street, opened in Fall 2008 as well. The new garage can accommodate 844

vehicles and also offers street level suites occupied by restaurants and a bank

branch.

The JC Penney Garage, at 6th Avenue and D Street, underwent a $1.6 million

renovation. Significant road improvements were completed during 2008 and

2009, which targeted high traffic areas and are intended to improve the roads and

surrounding area throughput

Trends The neighborhood is currently stabilized; however, anticipated increases in the

demand for office and retail space as well as multi-family housing around the

Downtown periphery will continue to drive sporadic development in the future.

The immediate area has vacant land available (typically used as yard storage or

used car lots), but it is mostly developed. This limited supply is beginning to put

older properties in demand among investors and developers, who will then either

renovate them, or else demolish them and develop new structures on the site.

However, this is occurring closer to the CBD while the subject’s immediate

vicinity has seen little activity. Given surrounding land uses, future development

in the longer term will continue to be a mixture of commercial and multi-family

residential uses that complement the wide variety of users comprising the greater

Downtown market.

Conclusion

Conclusion The subject is located at the southeastern edge of downtown. The immediate

neighborhood is characterized by a mixture of older commercial uses, ranging

from retail to restaurants, to used car lots and service garages – along with older

residential uses. This particular portion of downtown is generally not held in high

regard - it was recently labeled a “deteriorated area” by Assemblyman Patrick

Flynn, who proposed real estate tax exemptions for developers in order to


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hopefully spur new construction, redevelopment, and remediation of

environmental contamination. Even so, it has been experiencing very sporadic re-

development over the past decade. As underlying land values continue to

gradually increase in the long run, more redevelopment of improvements past their

economic lives is expected. Overall, the subject’s neighborhood has a marginally

positive influence on market value, although it is recognized that current demand

is relatively low here which often leads to more extended marketing times.

Impact of Low Oil Prices

Current Conditions As discussed in the Area Data chapter(s), the price of crude oil has dropped to

roughly half of what it was just over one year ago. Although it has been holding

fairly steady since then, most experts do not expect a return to previous high price

levels in the near to mid-term. This is obviously of concern in Alaska, as the vast

majority of state government revenue stems from oil. However, available sale and

lease transactions in the local market have not yet demonstrated a change in

vacancy rates, prices, rents or capitalization rates. There is certainly nervousness

as low oil prices drag on and the State debates spending cuts (and/or revenue

increases via new taxes), but the market data does not indicate that real estate

fundamentals have been negatively impacted thus far.

Discussions with local brokers indicate that some buyers and tenants have begun

raising state economy issues for leverage in their negotiations. However, thus far

at least, the sellers and landlords apparently have not been appreciably changing

their positions. Lease renewals continue to be reported at approximately the same

rates as the prior term, although some landlords appear more willing to offer minor

concessions in the form of included parking downtown or perhaps slightly higher

TI allowances. In some cases, landlords have even achieved minor rent bumps

with no concessions given. Regarding sale prices, the number of transactions

available for analysis remains low in most cases. This is not a departure from

historic patterns in this relatively small market.

With respect to capitalization rates, it should be recognized that there has been rate

compression nationally over the last few years primarily due to historically-low

interest rates. Yet this has shown up in only muted fashion in Alaska, as cap rates

have held mostly steady based on available sale transactions. It could well be that

the downward pressure from interest rates has been responsible for counteracting

some upward pressure beginning to stem from low oil prices and other state-

specific realities. That said, it could also be that gradually increasing investor

return requirements are not yet reflected in the historic transactional data.

Generally speaking, appraisers must be careful to reflect the market based on

evidence rather than dictate it based on emotion or opinion. Interviews with

brokers, property managers and owners can provide meaningful insight into

market expectations. While consideration is given to expected future trends,

weight is necessarily (and appropriately) placed on actual, documented market

activity to date. Efforts have been made to obtain and analyze the most recent sale

and lease transactions available in the subject’s market segment. It is the

appraiser’s opinion the available data fairly represents current market and

economic conditions.


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Immediate Neighborhood Aerial Photograph


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Immediate Neighborhood Photographs

Alexander’s Body Shop Typical storage yard Barry’s Lounge

Vacant retail (former Spirits of Alaska liquor store) Typical office/shop. Light-n Up shop building

Former Fairview Substation Description of Site

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Description of Site

Description of Site

Name Former Fairview Substation

Address NSA E. 12th Avenue


Geo Coordinates Latitude: 61°12'37.53'N, Longitude: 149°52'11.63'W

Physical Location The subject is located on the south side of 12th Avenue between Gambell and

Hyder Streets, which is within the Fairview neighborhood just southeast of

downtown..

Assessor’s Tax Parcel

Number(s)3

002-131-41

Abbreviated Legal

Description

West 47' of Lot 3, Block 18D, Third Addition of Anchorage Townsite, Anchorage Recording District, Third Judicial District, State of Alaska,

according to Plat C-10A. (Per Department of Natural Resources

Records)

Gross Site Area 6,580 Sq Ft

Upon review of the site’s physical and economic characteristics, there do not

appear to be any factors that would reduce the usable area. Nonetheless, a survey

of the site indicating usable area was not provided to the appraiser. The market

value of this report assumes that all of the site’s gross land area is usable. In the

event that a portion of the site were found to be un-usable, the market value of the

subject could be less than the current estimate.

Shape The site is roughly rectangular.

Street Frontage The subject has approximately 47'’ of frontage on East 12th Avenue, as well as

along the alleyway to the south. East 12th is a low-traffic, interior, commercial

neighborhood street.

Access Access to and from the subject is considered average relative to competing

properties.

Exposure Exposure of the subject is considered average relative to competing properties,

although it would not be adequate for most retail uses.

Adjacent Land Uses /

Businesses

NORTH East 12th Avenue and auto shop

3 Per Tax Assessor Records.

Des

crip

tion

of

Sit

e


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SOUTH Office

EAST Fenced yard area, older residence

WEST Shop/office

Topography The subject has level topography, and is at grade with surrounding properties.

Soil Conditions Soils conditions in the subject’s market are not uniform and can vary widely from

one site to another. No soils report was provided. It is an ordinary assumption of

this report that the soil conditions are sufficient quality to support the existing

parking lot and any future development likely for the site.

Wetlands No surface water was noted during the walk-through and the subject does not

appear to contain any wetlands.

Hazardous Conditions A complete environmental site assessment was not available to the appraiser.

There are no known or disclosed environmental issues, or hazardous conditions,

impacting the subject. The detection of hazardous materials or conditions is

beyond the scope of expertise and competency of an appraiser, however, and it is

recommended that any concerns relating to hazardous conditions be addressed by

a qualified environmental specialist. Furthermore, it is an extraordinary

assumption of this report that there are no hazardous conditions present at the

subject.

Flood Zone The Flood Emergency Management Agency or FEMA has prepared flood

insurance rate maps for various communities in the State. According to the flood

insurance map, community panel number 020005-0753D, issued by the Federal

Emergency Management Agency and last updated September 25, 2009, the

subject is located within the following zone:

ZONE C / X (UNSHADED)

Minimal risk areas outside the 1-percent and .2-percent-annual-chance

floodplains. No BFEs or base flood depths are shown within these zones. (Zone X

(unshaded) is used on new and revised maps in place of Zone C.)

Earthquake Zone Alaska is a seismically active region. A geotechnical hazards survey was

completed for the Municipality of Anchorage in 1979. This survey indicates the

subject is located in Zone 2, which is described as having a moderately low risk of

ground failure. In certain instances, lending institutions will require that

earthquake insurance be obtained for properties located within high risk zones.

Other than the premium in the cost of obtaining earthquake insurance, data does

not indicate any discount in value for properties located in higher risk areas. In

fact, most competing properties in the subject’s area have similar levels of

earthquake risk.

Utilities All public utilities appear to be available to the site.


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Aerial Photograph Exhibit


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Grid Map Exhibit


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Zoning

GENERAL BUSINESS

DISTRICT (B-3), MUNICIPALITY OF

ANCHORAGE

Intent: The B-3 district is intended primarily for general commercial uses in

commercial centers and areas exposed to heavy traffic. These commercial uses are

intended to be located on arterials, or within commercial centers of town, and to

be provided with adequate public services and facilities. They are subject to the

public view and should provide an attractive appearance with landscaping,

sufficient parking, and controlled traffic movement. Environmental impacts

should be minimized. Abutting residential areas should be protected from

potentially negative impacts associated with commercial activity. While B-3

district areas shall continue to meet the need for auto-related and other auto-

oriented uses, it is the municipality’s intent that the B-3 district also shall provide

for safe and convenient personal mobility in other forms. Planning and design

shall accommodate pedestrians and bicyclists. In addition to a wide range of

commercial office, retail and commercial services, other use categories such as

residential and community uses, and mixed-use projects, are allowed.

Permitted Uses: Business, professional and personal services, office, mixed-use

and multi-family residential, parks & playgrounds, child and adult care facilities,

educational, religious assembly, retail, food & beverage services, agricultural uses,

vehicle sales, rental & repair, hotel/motel/inn, parking structure, hospital and

nursing facilities.

Conditional Uses: High voltage transmission tower, vocational or trade school,

correctional community residential centers, public safety facility, light contractor

and special trades, commercial food production, light warehouse or wholesale

establishment, snow disposal sites, natural resource extraction.

Prohibited Uses: Single-family dwellings, duplexes, cemetery or mausoleum,

correctional institution, airport or airstrip, rail yard or railroad freight terminal,

utility facility, wind energy conservation system, civic/convention center, golf

course, motorized sports facility, shooting range, general industrial services, heavy

equipment sales and rental, general manufacturing, marine facilities, impound,

salvage or storage yards, composting facility, landfill, solid waste transfer facility.

Basic Design Standards:

Permitted Residential Units: Multi-family

Minimum Lot Size: 6,000 sq ft

Minimum Width: 50’

Front Setback: 0’ if mixed-use development; 10' for all other

uses

Side Setback: 15' if adjacent to residential; 0' nonresidential

Rear Setback: 15' if adjacent to residential; 0' nonresidential

Maximum Height: 45' except certain Midtown areas where height is

unrestricted

Maximum Site Coverage: 50% for residential uses; 100% all other uses

The subject’s zoning is not unduly restrictive, permits a wide variety of uses that

are consistent with its highest and best use as vacant, and does not appear to

materially limit the economic potential or functional utility of the property.


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Easements, Covenants,

Encroachments &

Restrictions

Although requested, a title report was not provided for this assignment. Neither

the grid map nor the plat map (which is admittedly quite old) show any easements.

That said, normal easements along property boundaries for streets or utilities are

assumed. No legal restrictions or encumbrances that would adversely affect use or

marketability of the property are known. Title and land use, however are legal

issues and an attorney should be consulted relating to questions on these matters.

It is an ordinary assumption of this report that there are no significant restrictions

that would adversely affect use or marketability of the property.

Site Improvements The site is paved, and the asphalt appears to be older but in average condition

overall. There is also chain link fencing along the north, east and south

boundaries (again, older but in average condition). The contributory value of

these site improvements is nominal, and is considered implicitly in the

reconciliation of value.

Functional Utility The site is small and could accommodate only a very small development. All

utilities are present, and soils are presumably buildable. Access and exposure are

average, but as an interior lot this would not likely appeal to most retail users.

Generally speaking, the property is located in a relatively low-demand portion of

east downtown for most retail and office uses. There are no other known physical

or economic characteristics that limit the site’s development potential and level of

functional utility. Overall, the site is concluded to provide below average utility

for the variety of uses consistent with zoning.

Former Fairview Substation Property Assessment & Taxes

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Property Assessment & Taxes

Summary of Property Assessment & Taxes

Real Property Properties located within the subject’s market are assessed by the assessor every

year. By statute, each property must be assessed at 100% of market value. The

millage rate (on which property taxes are based) is determined annually based on

spending and assessment levels. Millage rates vary constantly and are influenced

by state law and services provided in each individual district. The assessed value

of all properties located within a district is divided by a particular year’s budget

requirements to arrive at a millage rate. Thus, actual spending determines the

amount of tax, and assessment allocates the tax among property owners.

Therefore, an increase or decrease in total assessment will not, by itself, result in a

change in the total property tax collected.

While mass appraisal is useful for the allocation of the total tax liability among

property owners, it is not always a reliable indicator of the market value of a

specific property. As such, market participants do not generally use assessed

value to determine market value. Market participants do carefully analyze the

impact of current and projected real estate taxes on cash flow and market value.

While Alaska is a non-disclosure state and the assessor does not have access to

sale information, they do have confirmation from the recorder’s office of a sale

occurring. Often times the assessment the year following a sale increases

dramatically with the burden of disproving the assessment falling on the property

owner. This in turn often requires disclosure of any subject sale. Because of these

factors, irrespective of actual historic assessment, most market participants input

real estate taxes on a stabilized basis, where projected assessment correlates with

the estimated market value and is reflective of assessment in a post-sale

environment.

In recent years, the assessment-to-value ratio has been increasing within the

subject’s market. Most similar properties in the subject’s market have been

historically assessed at between 70% and 90% of their actual market values. This

is in part because Alaska is a non-disclosure state and in part that values have been

increasing and it often takes several years for this to be reflected in the assessment.

While not a regular occurrence, on occasion the assessment on a property will be

above market value. In these cases, an MAI appraisal is usually sufficient

documentation for the assessor to make an adjustment to the assessed valuation.

In the event that the assessor is unwilling to change the assessment an appeal may

be filed. If the appeal is not granted by the assessor the tax payer has the right to

be heard in front of the Board of Equalization. Of note, the taxpayer also has the

right to appeal assessed value based on equity (the relative assessment of the

subject compared to similar properties).

In the subject’s case, no historic assessment information is available due to its

public ownership. Were the property to sell to a non-tax-exempt entity, it would

presumably be assessed at that point.

Prop

erty

Ass

essm

en

t &

Taxes

Former Fairview Substation Subject Photographs

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Subject Photographs

Facing east along 12th

Avenue; Subject at right..

Facing south from 12th

Avenue towards subject.

Su

bje

ct P

hoto

gra

ph

s

Former Fairview Substation Subject Photographs

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Facing west along 12th

Avenue; Subject at left.

Former Fairview Substation Highest & Best Use

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Highest & Best Use

Definition & Methodology

“Highest & Best Use” is defined as:

“The reasonably probable use of property that results in the highest

value. The four criteria that the highest and best use must meet are legal permissibility, physical possibility, financial feasibility, and

maximum productivity.”4

Scope of Highest &

Best Use

A specific determination of highest and best use would require specific cost

estimates, which were not available to the appraiser, and is beyond the scope of

this assignment. Unless otherwise indicated, the highest and best use as vacant

analysis should not be construed as a feasibility study, which is beyond the scope

of the current assignment. Rather, the analysis is meant to provide a general

indication of highest and best use based on a qualitative review of the available

evidence. Furthermore, unless otherwise indicated, the assignment is not a

feasibility study of potential conversion or renovation of the property and

continued use “as is” or “as proposed” is implicit in the current value estimate.

As Vacant

Legally Permissible Private restrictions, zoning, building codes, historic district controls and

environmental regulations determine those uses legally permissible on a site. No

private restrictions or historical district controls encumber the subject site. In

addition, there are no known environmental regulations that inhibit development

of the site.

Physically Possible Size, shape, area, terrain, accessibility and availability of utilities affect the uses

under which a property can be developed.

Financially Feasible Feasibility is indicated by construction trends in the vicinity and current market

conditions. All uses that are expected to produce a positive return are regarded as

financially feasible.

Maximally Productive When development options are available, a determination must be made as to

which feasible use is the maximally profitable use.

Within this market, the presence of developer’s margin is highly specific to the

individual project. Nonetheless, it is noted that developer’s margins have been

attained within the subject’s geographic area for a wide variety of property types

in certain cases. The majority of new construction, however, has been by owner-

users whose needs were not met by the existing inventory and there has been less

speculative development.

In general, this specific portion of east downtown is not an in-demand location for

retail or office use. The vicinity is comprised of a mixture of shop/industrial

buildings, liquor stores, lower quality retail and office buildings, older residential

4 Source: The Dictionary of Real Estate Appraisal, Sixth Edition. Chicago: Appraisal Institute, 2015.

Hig

hes

t &

Bes

t U

se

Former Fairview Substation Highest & Best Use

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and yard storage. While there is residential nearby (to serve or which could

accommodate employees), the Fairview neighborhood is regarded by typical

market participants as being of lower appeal than most other residential districts in

Anchorage. Rents in the neighborhood tend to fall towards the lower end of the

local market. Thus, while redevelopment with a more intensive use will

presumably make sense at some point in the future, indications are that the current

use (interim) will remain the highest and best use for the foreseeable future.

Based on a review of the subject’s zoning, land use trends, neighborhood

characteristics and trends, shape, size, functional utility as well as market vacancy

rates, rental rates and other factors, the subject’s highest and best use as vacant

may include holding for future development or immediate development as retail,

auto-retail, restaurant, office, or other unidentified use that provides the highest

return to the underlying land once feasibility has been ascertained. Surface

parking or yard storage would be an obvious interim use, as in fact the property

has been used historically.

Probable Buyer

As vacant land, the subject could potentially appeal to investors (developers) or

users. Either type could be considered a probable buyer.

Former Fairview Substation Land Valuation

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Land Valuation

Introduction

Methodology Land is customarily valued as though unimproved and available for development

to the use, which would justify the highest price and the greatest net return. Sales

of unimproved land most similar to the subject are investigated and the most

appropriate transactions are analyzed. The land value estimate traditionally

reflects the fee simple value of raw land with good soils, available access,

available utilities, minimal site work completed, generally level and at grade, with

no site improvements (paving, landscaping, lighting, fencing, etc.).

Units of Comparison Units of comparison, components into which properties may be divided for

purposes of comparison, are derived from comparable sales data. Brokers,

developers and other market participants indicated a common unit of comparison

for properties in this market is the price per sq ft of usable land area.

Comparable Data

Sources of Data The following transactions were obtained from various sources including web

sites (Alaska Multiple Listing Service, Loopnet and Craigslist), brokers, assessors,

appraisers, other individuals and most notably the Reliant, LLC internal database.

Availability of Data The availability of comparable data is a function of the subject’s location, property

type, property size, market size and market activity. Sales activity involving

vacant parcels in east downtown / Fairview has been sporadic in past years. That

said, market research identified a number of relatively recent (for this area) sale

transactions. The available data is considered adequate if not ideal to derive a

credible indication of value in this case. An additional sale from south Anchorage

was included to supplement the more dated data. Several local brokers were also

interviewed for this assignment to provide additional anecdotal evidence given the

data limitations.

Presentation of Data The most relevant data for these transactions is presented on the following

summary table. The following map highlights the location of the comparables

relative to the subject.

Lan

d V

alu

ati

on


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Summary of Comparable Land Sales Exhibit

No. Name Usable Land

Sq Ft

Utilities Soil Conditions Current Use Access / Exposure Shape Date Marketing

Time

Nominal

Price

Analysis

Price

No. Legal Description Acres Zoning Intended Use Road Frontage Topography Transaction

Type

$/Sq Ft

L-1 626 Gambell St. - 1415 3,100 Good Office Average / Good Rectangular Nov-10 24 months $70,000 $70,000

E 1/2 Lot 12, Block 16, East Addn.

Original Townsite

0.07 B-3, General Business Office 44' Generally Level Closed $22.58

L-2 640 Gambell St. - 1409 13,643 Good Vacant Land Average / Good Rectangular Sep-11 1 month $235,000 $305,000

Lot 14A, Block 16, East Addition

Subd.

0.31 B-3, General Business Commercial 243' Generally Level Closed $22.36

L-3 744 E. 12th Ave. - 2659 7,000 Good Vacant Land Average / Average Rectangular Jul-13 18 months $78,000 $85,800

Lot 1, Block 18D, Third Addition 0.16 B-3, General Business Residential 190' Generally Level Closed $12.26

L-4 3208 Spenard Rd - 2654 16,383 Good Vacant Land Average / Average Trapezoidal Dec-14 9 months $225,000 $270,000

Lts 1-3, Roberts & Wilson 0.38 B-3, General Business 0 150' Generally Level Closed $16.48

L-5 702 W 27th Ave - 2635 6,944 Average Vacant Land Average / Average Rectangular Oct-15 3 Months $140,000 $140,000

Lt 6 Blk 2, Parmenter 0.16 B-3, General Business Auto Detail 56' Level & At

Grade

Closed $20.16

L-6 1401 Hyder St - 2653 7,000 Good Vacant Land Average / Average Rectangular Dec-15 9 years $114,900 $114,900

Lot 12, Block 27C, Third Addn 0.16 B-3, General Business Investment 190' Generally Level Expired Listing-

w/ Offers

$16.41

L-7 636 Ingra St - 2655 42,000 Good Parking Average / Average Rectangular May-16 3 months $800,000 $800,000

Lts 7-12, Blk 15C, East Addn. 0.96 B-3, General Business Unknown 300' Generally Level Listing $19.05

Subj Former Fairview Substation 6,580 Good Parking Average / Average Rectangular Appraisal - - - - - - $92,000

Subj West 47' of Lot 3, Block 18D, Third

Addition of Anchorage Townsite,

0.15 B-3, General Business 47' Level $14.00

All Available

All Available

All Available

All Available

All Available

All Available

All Available

All available


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Map of Comparable Land Sales Exhibit


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Description of Data

Sale No. L-1

This is the sale of a vintage 1960 772 sq ft single family residence that was in poor

condition at time of sale. The buyer intended to convert the residence into office,

which will require a complete interior gutting, including new mechanical and

electrical. Exterior work will also be required. Note that the property was

originally listed for $200,000 in November 2008 and was incrementally lowered

over time to $89,000 in July 2010. While the lot was improved at the time of sale,

at $70,000 ($22.58/sq ft) the property essentially sold for land value. According

to the listing agent/seller, the buyer intends to owner-occupy the improvements as

office space for his business. Given the condition of the improvements at time of

sale they are concluded to have contributed no value to the property at time of

sale. Overall, this was an arms-length transaction with typical financing, and was

representative of market conditions at the time of sale.


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Sale No. L-2

This is the sale of a distressed property. The owner owed back taxes and had until

October 3, 2011 to sell the property or it would be seized by the municipality.

While the seller received back up offers at $285,000 he had to accept the lower

offer in order to push the sale through before the October 3rd deadline. At the

time of sale, the property was a used car lot and was improved with a small

building. The new owners indicated they would be removing the old building and

putting in a small restaurant. Therefore, the analysis price has been adjusted

upward $5,000 for the cost to remove the building, and $60,000 for conditions of

sale. An analysis price of $305,000 for the property is supported by the broker

who stated she could have sold it for $300,000 if it were not for the condition of

sale. For reference, the adjacent property owner offered $275,000 for the site in

2010.


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Sale No. L-3

This is the sale of B-3 zoned lot located at the southwest corner of East 12th Ave

and Hyder St. At the time of sale, there was an old (1959), small (300 sq ft)

residence in poor condition on the site. However, the structure did not have a

permanent foundation and was not determined to provide any additional value to

the site. This was an estate sale, as the previous owners had died. It was listed for

18 months, beginning at $16.43/sq ft then decreasing to $12.57/sq ft, before

selling at $11.14/sq ft. For reference, it sold previously in January 2009 for

$91,500 ($13.07/sq ft). Upward adjustment for conditions of sale is made at 10%,

resulting in an analysis price for the most recent transaction of $85,800 or

$12.26/sq ft.

Sale No. L-4


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This is the sale of three adjoining lots at the northwest corner of Spenard Rd and

33rd Ave in midtown. The parcel was marketed for approximately 9 months,

beginning at $299,000 but later reduced to $249,900. It ultimately sold for

$225,000. However, this was a bankruptcy estate sale with an outside trustee

unfamiliar with Alaska, and the broker indicated this negatively impacted

marketing and, ultimately, the price. Based on discussions with the broker as well

as the reported appraised value at the time, upward adjustment of 20% is

warranted for conditions of sale, resulting in an analysis price of $270,000.

Sale No. L-5

This is the sale of a commercial site just east of Arctic Blvd on W 27th Ave, just

north of Northern Lights Boulevard. The buyer owned the lot directly west of this

lot and planned to operate an auto-detailing business on this lot. Overall, it was an

arms-length transaction reflective of market at the time.


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Sale No. L-6

This is the expired listing for a vacant lot at the southeast edge of downtown. At

the corner of Hyder Street and 14th Avenue, it is located one block away from the

heavily-trafficked 15th Avenue, Ingra Street and Gambell Street. For reference, it

sold in January 2007 for $105,000 or $15/sq ft. It has been listed on and off since

May 2007 - usually with ~6 months spacing between offerings - yet no sales have

occurred. The asking price began at $21/sq ft and ultimately decreased to

$16.41/sq ft before the listing expired again at the end of December 2015. There

was reportedly one offer of $16/sq ft several years ago, but this was withdrawn. It

is an example of the relatively low demand for vacant land in east downtown that

lacks frontage along a main thoroughfare. Moreover, the agent indicated the lot

size limited development potential to a very small building, which also made

marketing difficult.


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Sale No. L-7

This is the current listing for 6 contiguous commercial lots (half a block) on the

north side of 7th Ave between Hyder and Ingra Streets. It has been used as

parking historically. The property was listed for sale at $1,100,000 or

approximately $26/ sq ft for one year before the listing expired in January 2014.

The broker reported that there was sporadic interest, but not at the asking price.

An offer was made at approximately $15/sq ft (for retail/warehouse development),

but this was rejected. The property was re-listed at its current asking price of

$800,000 or $19/sq ft in early 2016.

Overview of Adjustments

Nature of Adjustments Adjustments to the comparables are necessary to reflect advantages and

disadvantages relative to the subject. Ideally, quantitative adjustments are

determined through paired sale analysis or other definitive data. However, when

quantitative adjustments cannot be reliably ascertained - as is often the case in

Alaskan markets due to data limitations - qualitative adjustments may be applied

through a weighted analysis of each comparable based on its relative merits.

These adjustments may be supported by available market data, discussions with

local market participants, and/or information contained within the appraiser’s

files.

Note that qualitative adjustments - based on the above as well as on appraiser

judgment - are applied on a numeric (percentage) basis in this appraisal.

Ultimately, the adjustment grid presented further in this chapter is not intended to

imply that all of the adjustments were performed on a quantitative basis. Rather,

the adjustment grid is presented to more precisely communicate the appraiser’s

opinion on the direction and degree of adjustment required to a given comparable.

Usable Land Area Non-usable areas due to topography, wetlands, overhead utilities or other issues

are subtracted from gross site area.

Property Rights When real property rights are sold the contract may include rights that are less


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Conveyed than or more than all of the real property rights. Examples include the inclusion of

another property, personal property, or the sale of a property subject to a below

market or above market lease. Therefore, the sale price of the comparable

property must be adjusted to reflect the property rights that are similar to those

being appraised. In this analysis the comparables are adjusted to reflect the fee

simple sale price of the real property. Adjustments to the comparables are

required in cases where the property interest sold was less than or greater than the

fee simple value.

Financing Terms Seller-provided financing can play an important role in the sale of a project. Low

down payments and terms that are significantly less stringent than those available

in the market at the time of sale contribute to sale prices in excess of that

obtainable by an all-cash or typically financed (by a disinterested third party)

buyer. In order to analyze all properties on a comparable basis, those sales with

financing not typically available for the property at the time of sale must be

converted to typical terms and cash equivalency.

Conditions of Sale Adjustments for conditions of sale are intended to reflect the motivations of the

buyer and the seller. Conditions of sale that are outside the definition of market

value must be adjusted to reflect a fully marketed property with adequate exposure

and an arms-length transaction where neither the buyer nor the seller is unduly

motivated. Adjustments may be required to properties where one party was

unusually motivated, foreclosure sales, properties that were not fully exposed to

the market, and active listings that have not closed.

Market Conditions Market values have generally increased in recent years as the available supply of

substitute properties has decreased and the number of investors and users actively

seeking properties has increased. In the process of completing this assignment, or

as part of previously completed assignments for similar properties in this segment,

consideration was given to the limited available paired sales, along with rent

trends, assessment trends, MLS trends, and discussions with market participants.

Based on the available information, prices in this particular neighborhood have

essentially remained flat over the past several years. Accordingly, all of the

selected transactions are considered to be fairly reflective of the current

environment, and no market conditions adjustments are warranted in this case.

Location Location is a broad term that includes non-property specific factors such as

neighborhood and surrounding demographics and property specific factors such as

surrounding streets, street frontage, access, exposure, number of corners, traffic

counts, adjacent properties and other factors. Where appropriate adjustments for

certain components of location may be performed individually.

Size If an adequate supply of larger sites exists, then generally smaller parcels tend to

sell for higher prices per sq ft. If supply of larger parcels is limited, then they

occasionally sell for a premium. A review of data indicates that within the

subject’s market segment (specifically, midtown Anchorage), size does not have

as significant an influence on unit price as in other districts. That said, smaller

parcels do tend generally to sell for somewhat higher prices per sq ft than much

larger parcels. Accordingly, very large parcels (relative to the subject) would

warrant upward adjustment.


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Shape The shape of a parcel may impact its development potential or site configuration.

Adjustment may be warranted for parcels with a significantly different shape than

the subject.

Use / Zoning Differences in the current use or the highest and best use of a potential comparable

and the subject must be analyzed. Site development potential depends heavily on

zoning requirements. Zoning determines how large a structure and for what type

of use a site can be developed. Adjustments are required to comparables with

zoning designations that provide a lower or higher level of overall functional

utility relative to the subject’s zoning.

Other The adjustments listed above are not inclusive of all the adjustments considered by

the appraiser. Physical and economic differences where adjustments have not

been explicitly made are implicitly considered in the appraiser’s analysis of the

comparable and value estimate.


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Adjustment Grid Exhibit

Name

Date

Price

Land SF

$/Sq Ft

Property Rights Fee Simple 0.0% Fee Simple 0.0% Fee Simple 0.0% Fee Simple 0.0% Fee Simple 0.0% Fee Simple 0.0% Fee Simple 0.0%

Financing Conventional 0.0% Conventional 0.0% Conventional 0.0% Cash 0.0% Cash 0.0% Conventional 0.0%Conventional0.0%

Conditions of Sale Arms Length 0.0% Distressed/F 0.0% Motivated Se 0.0% Distressed 0.0% Arms Length 0.0% Asking -15.0%Arms Length 0.0%

Market Cond. Thru 5/16 0.0%

Location

% Adjustment

$ Adjustment

Land SF (Size)

% Adjustment

$ Adjustment

Shape

% Adjustment

$ Adjustment

Utilities

% Adjustment

$ Adjustment

Zoning

% Adjustment

$ Adjustment

Net Adjustments

Gross Adjustments

Rectangular RectangularTrapezoidalRectangularRectangular

$0.00

0%

$0.00

42,0006,9447,000

Rectangular

B-3, General

Business

15.0%

-15.0%

$19.15

-5.0%

15.0%

$13.95 $14.29

-10.0%

25.0%

-25.0%

10.0%

Adjusted Land SF Unit Price

0.0%

$22.36

0.0%

$19.05

0.0% 0.0%

$13.95

$19.05$16.48$22.58

0%

$0.00

$0.00

$0.00

0%

All Available

0%

$0.00

B-3, General

Business

B-3, General

Business

0%

0%

$0.00

$0.00

$1.01

All AvailableAll Available

$0.00

B-3, General

Business

$0.00

0%

5%

0%

$0.00

RectangularRectangular

B-3, General

Business

All Available

$0.00

0%

$0.00

0%

All Available

0%

$0.00

-25.0% 0.0%

$14.83$12.26

25.0%

$16.94Adjusted Land SF Unit Price

0.0%25.0%

-25.0%

$16.77

0%

$0.00$0.00

$0.00

0%

B-3, General

Business

0%

$85,800

5/3/2016

7,000

$305,000

$12.26

6,580

- - - $22.58

11/4/2010

$70,000

$22.36

13,6433,100

Transaction Adjustments

$12.26

744 E. 12th Ave. -

2659

L-6Land Analysis Grid L-1 L-2

Former Fairview

Substation

626 Gambell St. -

1415

640 Gambell St. -

1409

12/31/201510/16/2015

3208 Spenard Rd -

2654

1401 Hyder St - 2653

$140,000

702 W 27th Ave -

2635

L-4

$114,900

L-3 L-5

636 Ingra St -

2655

$19.05

B-3, General

Business

16,383

$0.00

$0.00

0%

All Available

0%

0%

$0.00

All Available

16,383

$20.16

L-7

42,000

5/4/2016

$800,000

7,000

0%0%

-$4.76

-25%

7,0006,944

$13.95

0.0%

$20.16$16.48

$16.41

$20.16

$0.00 -$1.65 -$2.02 $0.00

0% -10% -10% 0%

Appraisal

9/1/2011

$270,000

$16.48

7/18/2013

Conventional

12/23/2014

$12.26

Arms Length

Fee Simple

0.0%

$22.36

0.0%

Adjusted Land SF Unit Price $22.58

6,580

0%0%

3,100

$0.00

-$5.65 -$5.59

-25% -25%

13,643

0%0%

$0.00

0%

0%

$0.00

$0.00 $0.00

0%

B-3, General

Business

$0.00

0%

$0.00

All available


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Discussion & Analysis After Adjustment

The comparables bracket the physical and economic characteristics of the subject.

They bracket the market value of the subject on an unadjusted basis, and inferior

comparables were adjusted upward while superior comparables were adjusted

downward. Prior to adjustments, the sale prices fall within a relatively wide

range. After adjustments this range is narrowed, supporting the overall

reasonableness of the adjustments made. Comparables requiring a lower degree of

gross adjustment are generally the most reliable indicators of value. Comparables

requiring higher degrees of gross adjustment are generally less reliable indicators

of value, but may still be meaningful and given weight if the adjustments made

were strongly supported.

Prior to adjustment, the comparables range from $12.26/sq ft to $22.58/sq ft, with

an average of $18.47/sq ft. After adjustment, they range from $12.26/sq ft to

$19.15/sq ft, with an average of $15.45/sq ft. All of the comparables except L-4

and L-5 are located in the downtown area, although location adjustments were still

warranted in several cases. This is reasonable, given the substantial drop-off in

land values as one moves away from the central CBD - which has been

demonstrated in land sale prices over the years. Moreover, in east downtown

particularly there is a substantial pricing difference between interior parcels and

those with frontage along major thoroughfares. No adjustments are warranted for

size, shape, topography, soil conditions or utilities in this case, however.

Overall, the degree of adjustment suggests that all of the selected comparables

provide reasonable indications of value. Particular attention is paid to L-3 as it is

located in close proximity and sold relatively recently (for this market segment, at

least). The recently expired listing of L-6 is also considered a strong indicator,

after downward adjustment is applied due to it being an asking price rather than a

consummated sale. Both of these comparables are interior lots and are similar to

the subject in most other regards as well. The remaining comparables required

varying levels of downward adjustment for location, and most offered direct

frontage on well-trafficked streets (i.e. Ingra St, Gambell St, and Spenard Rd).

For additional support, several local brokers were contacted regarding land values

in this location. While opinions varied slightly, the responses of these

knowledgeable brokers was that value for an interior parcel such as this would be

most likely expected in the range of $13-$15/sq ft. Several pointed out that the

site is not especially well positioned for most retail or office uses. While clearly

anecdotal, the brokers’ feedback is given consideration in this case particularly

due to the limitations of recent sale transactions in the vicinity.

After careful consideration, based on analysis of the data presented previously as

well as data contained within the appraiser’s work file, the market value of the

subject site is estimated towards the lower middle of the range at $14.00/sq ft.


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Fee Simple Land Value Calculation

FEE SIMPLE LAND VALUE CALCULATION

Usable Land Area 6,580

Land Value / Sq Ft $14.00

Estimated Land Value $92,120

Rounded $92,000

Ground Rent Analysis

Overview The Client has requested an estimate or market rent for the vacant site. In the

local area, direct rental comparison is not typically used by market participants to

set ground rent. Instead, a specified rate of return – most commonly between 7%

and 9% - is applied to the underlying fee simple site value, resulting in annual

ground rent on a fully triple net (NNN) basis. This is the common methodology

for new ground leases in the area, as well as periodic rent adjustments at existing

ground leased properties (with the adjustments most often being made at 5-year

intervals). It is employed by all of the major ground-lessors in this market,

including the Alaska Railroad Corporation, Calais Company, and Alaska Pacific

University.

Ground Lease Returns The following information summarizes typical annual ground rent rates, as a

percentage of fee simple land value. These rates are form the basis of calculating

market ground rent for the subject.


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STANDARD LAND LEASE RATES

Lessor Type Low High Typical

Calais Ground Lease Private 6.7% 9.0% 8.0%

White Pass Railroad Private - - 8.0%

Tlingit/Haida Central Council Private - - 8.0%

Ounalashka Corporation Private 8.0% 11.0% 10.0%

Alaska Pacific University Private 8.0% 8.0% 8.0%

Alaska Railroad (Standard) Quasi Private 8.0% 10.0% 8.0%

Alaska Railroad (Water & Comm.) Quasi Private - - 9.0%

Petersburg City 6.0% 10.0% 8.0%

Sitka City 8.0% 10.0% 9.0%

Juneau City 8.0% 10.0% 9.0%

Craig City - - 8.0%

Haines City - - 8.0%

Klawock City - - 8.0%

Kenai City - - 8.0%

Seward City - - 8.0%

University of Alaska State - - 10.0%

SOA - Dept. of Natural Resources State - - 8.0%

State of Alaska State 8.0% 9.0% 8.5%

Bureau of Land Management Federal - - 8.0%

Department of Justice Federal 8.0% 12.0% 9.0%

Low 6.0%

Average 8.4%

High 12.0%

Ann. Rent as % of F.S. Value

The vast majority of ground leases in the subject’s market area are based on an 8%

annual return rate. That said, many of the leases have been in place for decades,

with far less activity occurring recently. Of the new leases created during the past

decade, most have been at 8% as well, but two are known to have been done at a

lower initial rate (around 7%) to encourage development. Given this information,

a reasonable rate of return in the current environment is concluded at 7.5%.

Applying this rate to the previously reconciled fee simple value for the subject,

annual ground rent is calculated as shown below.

MARKET GROUND RENT CALCULATION

Estimated Land Value $92,000

Concluded Ground Lease Rate 7.5%

Market Rent (Annual) $6,900


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Final Value Estimate

FINAL MARKET RENT ESTIMATE


Property Rights Fee Simple

Condition As Is

Effective Date of Appraisal May 3, 2016

Lease Area Size 6,580 Sq Ft

Rent Escalations Mkt. Adj. / 5Yrs

Tenant Expenses NNN

Final Market Rent Estimate $6,900/Yr.

Exposure Period

As reflected by the local sales, properties were marketed for anywhere from just

a few months to several years before offers were obtained. Other land sales,

although not included as comparables for this specific appraisal, were typically

marketed for up to 12 months. At the concluded market value, a reasonable

exposure period of 12 months is concluded.

Marketing Time

Based on current market trends, a reasonable marketing time should be similar

to the exposure period. For a property of this type and size, in this

neighborhood, and given expected market conditions, a reasonable marketing

time would be up to 12 months. Note that it may be inappropriate for the Client

to assume value remains stable during the estimated marketing period.

Former Fairview Substation General Assumptions & Limiting Conditions

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General Assumptions & Limiting Conditions

1. Applicable to All Assignments: Unless explicitly stated to the contrary, the following General

Assumptions & Limiting Conditions apply to all assignments:

2. Acceptance of Report/Limit of Liability: The client’s acceptance and/or use of this report also

establishes the complete acceptance of all contingencies, assumptions, limiting conditions, etc., as stated

within the report. The client is responsible to become familiar with these assumptions and limiting

conditions. If placed in the possession of anyone other than the client, the client shall make such party

aware of these assumptions and limiting conditions. The appraiser(s) assume no liability for the client or

third party’s lack of familiarization and comprehension of the same. The appraiser(s) has no

responsibility or liability to correct any deficiencies of any type in the property, or any costs incurred to

correct such deficiencies whether legal, physical, or financial.

3. Responsibility of Client/Intended User to Accurately Communicate Appraisal Results: If placed in

the possession of anyone other than the client or intended user, they shall make such party aware of these

assumptions and limiting conditions. The appraiser(s) assume no liability for the client or third party’s

lack of familiarization and comprehension of the same. The appraiser(s) has no responsibility or liability

to correct any deficiencies of any type in the property, or any costs incurred to correct such deficiencies

whether legal, physical, or financial.

4. Post Appraisal Services: The contract for appraisal, consultation, or other service is fulfilled upon

completion of the assignment. The appraiser(s) or others assisting in this report will not be required to

provide testimony in court or other hearing, and will not participate in post appraisal services other than

routine questions with the client or third parties so designated by the client without a separate engagement

and for an additional fee. If testimony or deposition is required due to subpoena, the client shall become

responsible for the incursion of fees and charges for any additional time, regardless of the party.

5. Duplication and Dissemination of Report or Report Contents: This appraisal has been completed for

the client’s specific use as well as any other intended user(s) specifically identified in the report. The

appraiser(s) has no liability, accountability, or obligation to any other third party. The appraiser(s) retain

copyright of the data, discussions, and conclusions contained herein. Possession of this report does not

constitute the right of publication either in whole or in part. The client may only disseminate complete

final copies to third parties engaged in the course of underwriting and loan securitization, as well as to

any other intended user(s) identified in the report. Duplication and dissemination of selected sections of

this report to third parties without express written consent of the signatories of the report are prohibited

and may be misleading. This report in whole or in part may not be distributed to the general public by

use of advertising media, public relations, new outlets, etc. without the written consent of the signatories.

Exemptions from this restriction include duplication for the client’s internal use, dissemination to

accountants, attorneys, or advisors of the client. The exemption also extends to any court, governmental

authority, or regulatory agency that has jurisdiction or subpoena power over the individuals or parties for

whom the appraisal has been prepared or for ethics enforcement, provided that the report will not be

published in whole or in part in any public document or medium. This report shall not be advertised to

the public to make a “sale” or any “security” as defined by the Securities Act of 1933.

6. Appraisal Institute Use Restrictions: Disclosure of the contents of this appraisal report is governed by

the By-Laws & Regulations of the Appraisal Institute. Neither all nor any part of the contents of this

report (especially any conclusions as to value, the identity of the appraisers or the firm with which they

are connected, or any reference to the Appraisal Institute or to the MAI designation) shall be disseminated

to the public through advertising media, public relations media, news media, sales media or any other

public means of communication without the prior written consent and approval of the undersigned. No

part of this report or any of the conclusions may be included in any offering statement, memorandum,

Gen

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prospectus or registration without the prior written consent of the appraisers.

7. Unauthorized User: The report has been prepared for the client and any other intended user(s)

specifically identified in the report, within the context of the intended use only. The appraiser(s) has no

liability to any other third party. Any authorized user of this document who provides a copy of this

document to, or permits reliance thereon by, any person or entity not authorized by Reliant, LLC in

writing to use or rely thereon, hereby agrees to indemnify and hold Reliant, LLC, its affiliates and their

respective shareholders, directors, officers, and employee’s harmless from and against all damages,

expenses, claims and costs, including attorney’s fees, incurred in investigating and defending any claim

arising from or in any way connected to the use of, or reliance upon, the document by any such

unauthorized person or entity. Such unauthorized distributor accepts all liability to the unauthorized user

whom they distribute a copy of the report to. Any unauthorized distributor of this report is cautioned that

they may incur liabilities to the unauthorized user that they are providing a copy of the report to as well as

to Reliant LLC.

8. Reliability of Information Used: Through the course of this assignment the appraiser(s) collected data

from numerous sources deemed reliable, but not guaranteed. No liability is assumed for the inaccuracies

of data supplied by the various sources either public or private. Data relied upon in this report has been

confirmed with primary or secondary sources considered reliable and/or reasonable, and appropriate for

inclusion in the analysis. Although there were no reasons to doubt the general accuracy of such data,

unimpeachable verification or affidavits of all data is an impractical and an uneconomic expenditure of

time and resources and/or may involve legal or confidentiality issues.

9. Right to Amend Report: The appraiser(s) reserves the right to amend, modify, alter, or correct any and

all statements, analyses, and conclusions of the value indications in the event that incorrect data was

supplied, withheld, altered, or that any other pertinent data unknown, not disclosed, or revealed to the

appraiser(s), whether intentionally or unintentionally, during the course of this assignment subsequently

becomes available. Examples of such data that could impact the opinions of market value include but are

not limited to: street addresses, Assessor’s Parcel Numbers, site area, site dimensions, gross building

area, net rentable area, usable area, common area, number of units, number of room, rent rolls, historical

operating statements and budgets, sales data, etc.

10. Purchase and Sale Agreement: In the event of a pending sale, as of the report date, any purchase and

sale agreement (PSA, EMA, etc.) provided has been represented as being the final agreed upon document

reflecting the final price and terms negotiated between the parties. This information reflects the

perspective of a buyer and seller, and so may have been given significant weight in the final conclusion of

market value. In the event that the sale information provided subsequently turns out not to represent the

final agreed upon price and/or terms, or in the event that the price and/or terms are amended post-delivery

of this report, the market value estimate contained herein may be invalidated. The intended user(s) of this

report is advised not to rely upon it in this situation until the appraiser is provided the final/amended sale

information for their full consideration and possible amendment to the opinions and conclusions

originally stated in this report.

11. Obligation of User to Report Errors: Any authorized user is required immediately contact the

appraiser(s) and report errors, discrepancies, or alterations to the proposed properties or land parcels to

determine the impact on the opinion(s) of market value.

12. Integrated Analysis. The individual components of the analysis contained herein are highly interrelated

and subject-specific. As such, individual items such as rent, vacancy allowance, expenses, and rate of

return cannot be viewed individually without the context of the whole analysis. Moreover, conclusions or

individual components from this specific analysis cannot and should not be extracted for application to

other properties and/or situations.

13. Market Dynamic and Valuation Fluctuations: The opinions of market value expressed within the

report are subject to change over time as a result of market dynamics. Market values are highly


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susceptible to both macro and micro economic forces that influence the property. Such forces include but

are not limited to: exposure on the market, length of time, marketing efforts, motivations and preferences

of market participants, productivity of the property, the property’s market appeal, changes in investor

requirements regarding income and yields, etc. The opinions of market value are made as of the report

date and subject to fluctuations over time as a result of natural market forces.

14. Date of Value, Dollar Values, and Purchasing Power: The date of the report and the effective date of

the market value opinions are stated in the letter of transmittal or with the appropriate sections of the

report. All dollar amounts are based on the purchasing power of the United States Dollar (USD). The

analyses and conclusions of the appraisal are based upon the known market conditions as of the date of

report. Changes in market conditions or purchasing power may warrant a new appraisal assignment. The

appraiser(s) is available for consultations regarding changes in the economic conditions.

15. Fixtures, Furniture, and Equipment (FF&E) and Business Concerns: Personal property, FF&E,

intangibles, going concerns, etc., unless specifically stated as a component of the real estate, are excluded

from the market value estimates.

16. Non-Viewed Units/Spaces: In certain instances, due to current occupancy or lack of access, portions of

the subject’s units/spaces are not available to be viewed during the walk through. Unless otherwise stated

in the report, in these cases the person accompanying the appraiser on the walk through has represented

that the condition and quality of these units/spaces are similar to that of the property (viewed areas) as a

whole. It is a general assumption of this assignment that the units/spaces that were not viewed are

commensurate condition and quality with those viewed by the appraiser during the walk through.

17. Proposed Improvements, Renovations, and Repairs: For the purposes of this analysis, the proposed

improvements, renovations, and/or repairs are presumed to be completed in a workman-like manner, and

according to the detail, plans, and specifications supplied to the appraiser(s). The market value opinions

for such construction, renovations, and repairs are subject to an inspection of the improvements to

determine completion as per plans and specifications.

18. Date of Completion Value: The actual delivery date of proposed product may vary widely from the

anticipated date of delivery due to weather and other variables. If proposed or under construction, it is an

ordinary assumption of this assignment that the subject is completed as of the at completion date, which

has been developed based on discussions with ownership, contractors, architects and typical market

derived construction deliveries.

19. Limitations of Competency: The appraiser is competent in the valuation of real estate, which is a subset

of the field of economics. The appraiser is not competent in the fields of law, engineering, construction,

architecture, surveying or other areas of expertise. Clients bear the responsibility of consulting and

retaining experts outside the appraisal profession as required by the situation.

20. Lease Verification / Validation: Where applicable, the scope of lease verification was generally limited

to their economic characteristics and legal aspects of the leases were not reviewed or analyzed. It is

assumed that all of the leases are valid, legally binding documents.

21. Divisions or Fractional Interests: The opinions of market value apply to the entire property unless

specifically identified and established within the conclusions and analyses of the report. Division of

fractional interests by the client or third party will render this report invalid.

22. Component Values: The distribution of total valuation between the land and the building improvements

in this report are applicable only under the existing program or utilization of the property. The

component values between land and building are not intended, nor are they to be used in conjunction with

any other appraisal assignment, and are rendered invalid if used.

23. Survey: Site plans, sketches, or other illustrations are not surveys unless specifically identified as an

exhibit from a licensed survey. Surveys of the site boundaries were not completed, nor does the


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appraiser(s) imply such expertise. Dimensions and areas of the site were obtained from sources deemed

reliable but not guaranteed. Additionally, it is further assumed that no encroachments exist.

24. Exhibits: Maps, plats, sketches, photographs, and other exhibits are intended for illustration,

visualization, and assistance in describing and analyzing the property in full context. Such exhibits may

not be removed, reproduced, or separately used beyond this report.

25. Building Area: Reliant, LLC makes no warranty or certification relating to building area. In instances

when building area is not provided and is either partially or entirely unknown the appraiser may be

required to measure the property to provide an indication of building area. Measurements by the

appraiser may be made onsite or be made from property drawings, sketches, or actual architectural plans.

The user(s) of this assignment are cautioned not to view the appraisers building area estimate as having

the same degree of accuracy as a building area study performed by an appropriately qualified/certified

individual such as an architect or engineer and are recommended to engage such individuals for this type

of information.

26. Clear Title: It is specifically assumed, unless otherwise indicated, that the title to the property is clear

and marketable, that there are no recorded, unrecorded, or potential liens, defaults, encumbrances, etc.

that would adversely affect the marketability and transfer of ownership. Unless otherwise stated, all

applicable property taxes are assumed to be paid current. The appraiser(s) does not imply expertise in

determining defects in the title, nor has the appraiser(s) been informed of such adversities. Specific

questions regarding the title, including title insurance should be directed to a well qualified real estate title

company. The legal description provided by title report, surveyor, government records, etc. is assumed to

be correct.

27. Subsurface Rights, Avigation Easements, and Transferable Development Rights (TDR’s): The

market value opinion(s) specifically assume that there are no mineral deposit rights or other subsurface

rights, avigation easements, or transferable development rights associated with the property unless

explicitly stated within the report.

28. Private Deed Restrictions: The appraiser(s) makes the explicit assumption that there are no private deed

restrictions that in any way limit the use of the subject property.

29. Americans with Disabilities Act (ADA): The ADA became effective on January 26, 1992. The

appraiser(s) does not imply expertise in the interpretation of the ADA, nor has a compliance survey been

completed. The potential exists that if a compliance survey is completed combined with a detailed

analysis of the ADA requirements, deficiencies may be revealed that could adversely impact the market

value conclusion(s). No specific information regarding any non-compliance issues have been provided to

the appraiser(s) and the possibility of non-compliance was not considered in the developing the opinions

of value contained herein. Specific compliance questions should be directed to the appropriate governing

jurisdictional agency.

30. Zoning Ordinances: It is assumed that no changes to the current zoning code/ordinances or other

regulations regarding the use of the property, density of development, construction components and/or

quality of components, etc. are imminent or under consideration by the jurisdictional governing body,

unless otherwise noted in the report. The property is appraised under the assumption that the

improvements are approved, that certificates of occupancy or permits have been or will be issued, and

that all other applicable national, state, local, or other administrative requirements have successfully been,

or will be obtained or renewed for any use considered in the opinion(s) of market value.

31. Adverse Governmental Controls: Unless otherwise stated, the appraiser(s) is unaware of any

governmental controls on the property, public initiative issues, rent or price controls, or any other adverse

governmental or public controls contemplated regarding the legal use of the property.

32. Property Compliance: The appraiser(s) expresses no opinions or warranties that may require legal

expertise or specialized investigations beyond the methods and investigations typically employed by real


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estate appraisers. Market value opinion(s) and conclusions contained within the report assume that the

property is compliant with all environmental and government regulations such as building permits, fire

department approvals, occupancy permits, building codes, licenses, etc. If the appraiser(s) has not been

supplied with a termite inspection, occupancy permit, etc., no responsibility or representation is assumed

for correction costs associated with obtained those items or deficiencies discovered before or after they

were obtained. The appraiser(s) assumes no responsibility for costs incurred to obtain flood hazard

determination, flood hazard insurance, or consequences arising for failure to obtain flood hazard

insurance. Although the appraiser(s) has searched publicly available FEMA maps, a flood certification

should be obtained from a qualified agent for the Federal Flood Insurance Program.

33. Structural Integrity and System Components: No advice or warranty of any kind are expressed or

implied regarding the condition or adequacy of the mechanical systems, structural integrity of the

improvements, soils, settlements, drainage, or other factors regarding the integrity and adequacy of the

component systems of the improvements. The appraiser(s) is not a qualified engineer, nor is expertise

implied with respect to engineering matters. Client may desire to retain the services of a qualified

licensed contractor, civil engineer, structural engineer, architect, or other expert in determining the

quality, condition, and adequacy of the improvements prior to the disbursement of funds. It is assumed

that the existing improvements are structurally sound and constructed to the applicable federal, state, and

local building codes and ordinances. That assumption includes, but is not limited to: the superstructure,

roofing, electrical, plumbing, mechanical, HVAC, elevator, etc. The opinion(s) of market value are based

upon no hidden or unapparent adverse conditions of the improvements, the site, or the subsoil, which

would cause a loss in value. No responsibility or liability is assumed for any adverse conditions or for the

expertise and retention of experts in discovery, detection, and cost to cure. In the event that professional

consultations or reports reveal negative factors that would create a loss in value, the appraiser(s) reserves

the right to amend the opinion(s) of market value and other conclusions contained herein.

34. Environmental Hazards: Unless specifically stated, the appraiser(s) has no knowledge regarding the

presence or absence of toxic materials including but not limited to: asbestos, urea-formaldehyde

insulation, leaking underground storage tanks, contaminated groundwater, or other potentially hazardous

materials and substances that would adversely affect the market value and marketability of the property.

The appraiser(s) does not imply expertise and no liability is assumed for the detection or remediation of

such materials or substances, whether above or below the ground surface. Although a perfunctory

observation was made during the walk-through, the client is referred to an environmental expert for

further details, if so desired. If environmental hazards are discovered, the market value opinion(s) may be

negatively affected, requiring a re-appraisal of the property for an additional fee.

35. Environmental Compliance: Unless otherwise noted, the appraiser(s) makes the assumption that the

property is in compliance with all applicable national, state, or local environmental regulations.

36. Competent Property Management: It is assumed that the subject property analyzed currently is, or will

be under efficient and competent management and that said management is not, or will not be, inefficient

or super-efficient.

37. Ongoing Operations. In the event that the subject is a special purpose property or going concern,

ongoing business operations are assumed unless otherwise stated in the body of the report.

38. Financial Documentation: Historic income and expenses may have been provided by ownership, a

lender, property manager, real estate agent or other third party. The financial information is assumed to

reflect actual income and expenses at the subject using Generally Accepted Accounting Principles

(GAAP). This information is assumed to be accurate and it has not been audited in any way.

39. Cash Flow Projections: The cash flow projections presented in this report are forecasts of future

performance characteristics based upon the macro and micro economic data detailed in the analysis. The

income, vacancy, expenses, and general economic conditions presented are not to be construed as

predictions of the future, but rather reasonable expectations of future performance based on market


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modeling practices. Unless otherwise stated, the cash flow modeling is intended to reflect the opinions

and practices of market participants and is not the analyst’s forecast of what will actually occur. Actual

results will vary, and are affected by fluctuating economic conditions and efficiency of management. The

appraiser makes no warranty, express or implied, that the forecasts will occur as outlined. Additionally,

future economic projections may be adversely affected by unforeseen circumstances and economic

repercussions beyond the realm of knowledge or control, such as the events of September 11, 2001.

40. Asset Recommendations and Consultations: Asset Recommendations and Consultations: No

statements contained within the report shall constitute recommendations with regard to any decision by

the client(s) or intended user(s) with respect to prospective underwriting, financing, acquisition,

disposition, holding of the asset, or any other subsequent event, at the stated market value indication(s) or

otherwise. If the client requests a recommendation with respect to such a decision, it should be requested

in writing, be explicitly listed in the scope of work and explicitly addressed in the appraisal report. Such

decisions warrant significant research and strategy, with specific investment questions requiring

additional consultations and financial analysis. Any client or intended user should consider this

document as only one factor together with its independent investment considerations and underwriting

criteria, in its overall investment decision. The assignment is not intended to be either a positive or a

negative indication, nor endorsement, of the soundness of an investment or underwriting decision.

41. Agreement to Mediation and Binding Arbitration: If a dispute arises out of or relates to this

assignment and if the dispute cannot be settled through negotiation, the parties agree first to try in good

faith to settle the dispute by mediation administered by the American Arbitration Association under its

applicable procedures. Any controversy or claim arising out of or relating to this assignment that cannot

be resolved through said mediation shall be settled by binding arbitration administered by the American

Arbitration Association under its applicable rules and binding judgment on the award rendered by the

arbitrator(s) may be entered in any court having jurisdiction thereof.

42. Property Specific Assumptions, Limiting Conditions and Hypothetical Conditions: The user is

directed to the Assignment Overview section of this report for a listing of Extraordinary Assumptions and

Hypothetical Conditions specific to this assignment. The user is specifically cautioned to understand

each of the items listed and their impact on the property and scope of this assignment.

43. Dissemination to Assessor: The user(s) of this report may not provide a copy of this appraisal to any

assessment office or agency without the prior written consent of Reliant LLC, as redaction of certain

market and/or property level information may be required prior to submission for confidentiality reasons.

44. Duration (Term) of Assignment Reliance: The period of time that an assignment remains appropriate

for the client and intended user(s) intended use, including the factual conditions that form the premise of

the assignment, the research, data, analysis and conclusions, are dependent on a variety of factors

including the intended users, intended use, changes in market conditions, legal/regulatory/statutory

requirements, property specific conditions and other factors. This assignment shall not be relied upon by

the Client or intended user(s) after a period of thirty six (36) months from the earlier date of either A)

assignment delivery, which is most commonly the date of report, or B) an invoice is submitted to the

Client.

45. Duration (Term) of Assignment Validity & Reliant Liability: The assignment is valid only as of the

effective date. The applicability of the assignment for the intended use is a function of a variety of

factors, including the degree of changes in market and property conditions. However, the market/subject

factual information, analysis and conclusions, or any other aspect of the assignment, are valid for a period

no greater than thirty six (36) months from the earlier date of either A) assignment delivery, which is

most commonly the date of report, or B) an invoice is submitted to the Client. The assignment may only

be relied upon by the Client(s) or Intended User(s) for this specified period of time and Reliant shall have

no liability under this agreement to the Client, intended user(s) or any other party after this specified

period of time.


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46. Resolution of Violations & Deficiencies: Any violations or deficiencies resolved under the terms of this

agreement shall remain confidential between Reliant LLC and the Client, intended user(s) and reviewers.

Except as provided under this agreement, the Client, Intended User(s) or reviewers agree not to submit

the assignment to any applicable private or governmental body with jurisdiction over the matter. If any

aspect of the assignment is determined by the Client, intended user(s) or their reviewers, to not meet the

minimum standards of any applicable Local, State or Federal laws, including the Uniform Standards of

Professional Appraisal Practice (USPAP) the Client or intended user(s) agree to not submit the

assignment or individuals performing the assignment to any governing Local, State or Federal authorities

or any private entity with jurisdiction without first 1) notifying Reliant LLC of the violations and 2)

providing Reliant LLC an opportunity to correct and address any deficiencies that may exist. In the event

that Reliant LLC fully addresses any deficiencies to the satisfaction of the Client, intended user(s) or their

reviewers, these Parties agree that no further action shall be taken. If, however, that the Client, intended

user(s) or their reviewers do not believe that the issues have been fully resolved, Reliant LLC shall

engage a third party expert of their choice to perform a professional review of the assignment. If that

third party reviewer determines that the alleged issues have been resolved, the Client, intended user(s) or

reviewers shall be responsible for the fee to that third party reviewer. If, however, the third party

reviewer determines that the alleged issues have not been resolved, Reliant LLC shall have the

opportunity to correct and address any deficiencies that may exist and is responsible for the fee to the

third party reviewer. If, however, such issues are not fully addressed by Reliant LLC to the satisfaction

of the third party reviewer, the Client, intended user(s) or their reviewers are released from the

confidentiality requirement of this agreement and may submit the assignment to any applicable private or

governmental body with jurisdiction over the matter.

47. Unauthorized Third Party Liability to Reliant LLC for False Accusation: The assignment is a

private contract between Reliant LLC and the Client and intended user(s). Subject to the terms of this

agreement, only the Client or intended user are permitted to submit this document to any applicable

private or governmental body with jurisdiction over the matter without incurring any liability to Reliant

LLC and the signatories of the assignment for false accusation, misrepresentation, slander or libel. In the

event that the signatories of this assignment are found not to be in violation of any applicable governing

regulations, any unauthorized third party that makes false accusations or submits this assignment to any

applicable private or governmental body with jurisdiction over the matter accepts liability to Reliant LLC

for attorney’s fees incurred in their defense, lost income, damages to reputation of the signatories and

firm and any and all other sources of economic damage that may result directly or indirectly from their

said actions.

48. Data Utilization: The market and comparable data developed by the appraiser and presented in this

report is being provided to the Client and Intended User(s) only within the context of this specific

assignment. The Client and Intended User(s) are prohibited from distributing, disseminating, selling or

otherwise profiting from this data outside the context of this assignment. The Client and Intended User(s)

are, however, permitted to utilize this data strictly for their own internal purposes.

Former Fairview Substation Terms & Definitions

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Terms & Definitions

As Is Value5 The estimate of the market value of real property in its current physical condition, use

and zoning as of the appraisal date.

Prospective Value6 A value opinion effective as of a specified future date. The term does not define a type

of value. Instead, it identifies a value opinion as being effective at some specific future

date. An opinion of value as of a prospective date is frequently sought in connection

with projects that are proposed, under construction, or under conversion to a new use,

or those that have not yet achieved sellout or a stabilized level of long-term

occupancy.

Retrospective Value7 A value opinion effective as of a specified historical date. The term retrospective does

not define a type of value. Instead, it identifies a value opinion as being effective at

some specific prior date. Value as of a historical date is frequently sought in

connection with property tax appeals, damage models, lease renegotiation, deficiency

judgments, estate tax, and condemnation. Inclusion of the type of value with this term

is appropriate, e.g., “retrospective market value opinion.”

At Completion Value8 The market value at the effective date construction is completed or the certificate of

occupancy is issued.

At Stabilization Value9 The concept of value at stabilization is based on stabilized occupancy. Stabilized

occupancy is defined as occupancy at that point in time when abnormalities in supply

and demand or any additional transitory conditions cease to exist and the existing

conditions are those expected to continue over the economic life of the property.

Aggregate of Retail

Values / Sum of Retail

Values10

The sum of the separate and distinct market value opinions for each of the units in a

condominium, subdivision development, or portfolio of properties, as of the date of

valuation. The aggregate of retail values does not represent the value of all the units

as though sold together in a single transaction; it is simply the total of the individual

market value conclusions. Also called the aggregate of the retail values or aggregate

retail selling price.

Value in Use (Use

Value)11

The value of a specific property for a specific use.

Business Value12 The market value of a going concern, including real estate, personal property, and the

intangible assets of the business.

Going Concern

Value13

An outdated label for the market value of all the tangible and intangible assets of an

established and operating business with an indefinite life, as if sold in aggregate;

5 Source: The Dictionary of Real Estate Appraisal, Sixth Edition, Chicago: Appraisal Institute, 2015. 6 Source: The Dictionary of Real Estate Appraisal, Sixth Edition, Chicago: Appraisal Institute, 2015. 7 Source: The Dictionary of Real Estate Appraisal, Sixth Edition. Chicago: Appraisal Institute, 2015. 8 Source: The Appraisal of Real Estate, Fourteenth Edition, Chicago: Appraisal Institute, 2013. 9 Source: The Appraisal of Real Estate, Fourteenth Edition, Chicago: Appraisal Institute, 2013. 10 Source: The Dictionary of Real Estate Appraisal, Sixth Edition. Chicago: Appraisal Institute, 2015. 11 Source: Office of the Comptroller of the Currency under 12 CFR, Part 34, Subpart C-Appraisals, 34.42

Definitions [f]. 12 Source: The Dictionary of Real Estate Appraisal, Sixth Edition. Chicago: Appraisal Institute, 2015. 13 Source: The Dictionary of Real Estate Appraisal, Sixth Edition. Chicago: Appraisal Institute, 2015.

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more accurately termed the market value of the going concern or market value of the

total assets of the business.

Client14 The party or parties who engage, by employment or contract, an appraiser in a

specific assignment.

Intended Use15 The use or uses of an appraiser’s reported appraisal or appraisal review assignment

opinions and conclusions, as identified by the appraiser based on communication with

the client at the time of the assignment.

Intended User16 The client and any other party as identified, by name or type, as users of the appraisal

or appraisal review report by the appraiser on the basis of communication with the

client at the time of the assignment.

Fee Simple Estate17 Absolute ownership unencumbered by any other interest or estate, subject only to the

limitations imposed by the governmental powers of taxation, eminent domain, police

power, and escheat.

Leased Fee Interest18 The ownership interest held by the lessor, which includes the right to receive the

contract rent specified in the lease plus the reversionary right when the lease expires.

Leasehold Interest19 The right held by the lessee to use and occupy real estate for a stated term and under

the conditions specified in the lease.

Real Property20 An interest or interests in real estate.

Personal Property21 The interests, benefits, and rights inherent in the ownership of tangible objects that

are considered by the public as being personal; also called tangible personal

property.

Fixture22 An article that was once personal property but has since been installed or attached to

the land or building in a rather permanent manner so that it is regarded in law as part

of the real estate.

Intangible Property23 Nonphysical assets, including but not limited to franchises, trademarks, patents,

copyrights, goodwill, equities, securities, and contracts as distinguished from physical

assets such as facilities and equipment.

Extraordinary

Assumption24

An assumption, directly related to a specific assignment, as of the effective date of the

assignment results, which, if found to be false, could alter the appraiser’s opinions or

conclusions.

14 Source: Uniform Standards of Professional Appraisal Practice 2016-2017 Edition, The Appraisal Foundation. 15 Source: Uniform Standards of Professional Appraisal Practice 2016-2017 Edition, The Appraisal Foundation. 16 Source: Uniform Standards of Professional Appraisal Practice 2016-2017 Edition, The Appraisal Foundation. 17 Source: The Dictionary of Real Estate Appraisal, Sixth Edition. Chicago: Appraisal Institute, 2015. 18 Source: The Dictionary of Real Estate Appraisal, Sixth Edition. Chicago: Appraisal Institute, 2015. 19 Source: The Dictionary of Real Estate Appraisal, Sixth Edition. Chicago: Appraisal Institute, 2015. 20 Source: The Dictionary of Real Estate Appraisal, Sixth Edition. Chicago: Appraisal Institute, 2015. 21 Source: The Dictionary of Real Estate Appraisal, Sixth Edition. Chicago: Appraisal Institute, 2015. 22 Source: The Dictionary of Real Estate Appraisal, Sixth Edition. Chicago: Appraisal Institute, 2015. 23 Source: The Dictionary of Real Estate Appraisal, Sixth Edition. Chicago: Appraisal Institute, 2015. 24 Source: Uniform Standards of Professional Appraisal Practice 2016-2017 Edition, The Appraisal Foundation.


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Hypothetical

Condition25

A condition, directly related to a specific assignment, which is contrary to what is

known by the appraiser to exist on the effective date of the assignment results, but is

used for the purpose of analysis.

Gross Building Area26 Total floor area of a building, excluding unenclosed areas, measured from the exterior

of the walls of the above-grade area. This includes mezzanines and basements if and

when typically included in the market area of the type of property involved.

Rentable Area27 For office or retail buildings, the tenant’s pro rata portion of the entire office floor,

excluding elements of the building that penetrate through the floor to the areas below.

The rentable area of a floor is computed by measuring to the inside finished surface of

the dominant portion of the permanent building walls, excluding any major vertical

penetrations of the floor. Alternatively, the amount of space on which the rent is

based; calculated according to local practice.

Usable Area28 For office buildings, the actual occupiable area of a floor or an office space;

computed by measuring from the finished surface of the office side of corridor and

other permanent walls, to the center of partitions that separate the office from

adjoining usable areas, and to the inside finished surface of the dominant portion of

the permanent outer building walls. Sometimes called net building area or net floor

area.

Gross Leasable Area29 Total floor area designed for the occupancy and exclusive use of tenants, including

basements and mezzanines; measured from the center of joint partitioning to the

outside wall surfaces.

Tidelands Lands that lie below the mean high watermark. These include lands that are awash by

normal tidal flows and submerged lands below the mean low watermark.

Upland30 A piece of land that abuts a parcel with riparian rights; describes an owner once

removed from a water right by a riparian owner.

Special Purpose

Property31

A property with a unique physical design, special construction materials, or a layout

that particularly adapts its utility to the use for which it was built; also called a

special design property.

Excess Land32 Land that is not needed to serve or support the existing use. The highest and best use

of the excess land may or may not be the same as the highest and best use of the

improved parcel. Excess land has the potential to be sold separately and is valued

separately.

Surplus Land33 Land that is not currently needed to support the existing use but cannot be separated

from the property and sold off for another use. Surplus land does not have an

independent highest and best use and may or may not contribute value to the improved

25 Source: Uniform Standards of Professional Appraisal Practice 2016-2017 Edition, The Appraisal Foundation. 26 Source: The Dictionary of Real Estate Appraisal, Sixth Edition. Chicago: Appraisal Institute, 2015. 27 Source: The Dictionary of Real Estate Appraisal, Sixth Edition. Chicago: Appraisal Institute, 2015. 28 Source: The Dictionary of Real Estate Appraisal, Sixth Edition. Chicago: Appraisal Institute, 2015. 29 Source: The Dictionary of Real Estate Appraisal, Sixth Edition. Chicago: Appraisal Institute, 2015. 30 Source: The Dictionary of Real Estate Appraisal, Sixth Edition. Chicago: Appraisal Institute, 2015. 31 Source: The Dictionary of Real Estate Appraisal, Sixth Edition. Chicago: Appraisal Institute, 2015. 32 Source: The Dictionary of Real Estate Appraisal, Sixth Edition. Chicago: Appraisal Institute, 2015. 33 Source: The Dictionary of Real Estate Appraisal, Sixth Edition. Chicago: Appraisal Institute, 2015.


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parcel.

Depreciation34 In appraisal, a loss in property value from any cause; the difference between the cost

of an improvement on the effective date of the appraisal and the market value of the

improvement on the same date.

Entrepreneurial Profit

(Developer’s Margin)35

A market-derived figure that represents the amount an entrepreneur receives for his or

her contribution to a project and risk; the difference between the total cost of a

property (cost of development) and its market value (property value after completion),

which represents the entrepreneur’s compensation for the risk and expertise

associated with development. An entrepreneur is motivated by the prospect of future

value enhancement (i.e., the entrepreneurial incentive). An entrepreneur who

successfully creates value through new development, expansion, renovation, or an

innovative change of use is rewarded by entrepreneurial profit. Entrepreneurs may

also fail and suffer losses.

Market Rent36 The most probable rent that a property should bring in a competitive and open market

reflecting the conditions and restrictions of a specified lease agreement, including the

rental adjustment and revaluation, permitted uses, use restrictions, expense

obligations, term, concessions, renewal and purchase options, and tenant

improvements (TIs).

Exposure Time37 The estimated length of time that the property interest being appraised would have

been offered on the market prior to the hypothetical consummation of a sale at market

value on the effective date of the appraisal. Comment: Exposure time is a

retrospective opinion based on an analysis of past events assuming a competitive and

open market.

Marketing Time38 An opinion of the amount of time it might take to sell a real or personal property

interest at the concluded market value level during the period immediately after the

effective date of an appraisal. Marketing time differs from exposure time, which is

always presumed to precede the effective date of an appraisal.

34 Source: The Dictionary of Real Estate Appraisal, Sixth Edition. Chicago: Appraisal Institute, 2015. 35 Source: The Dictionary of Real Estate Appraisal, Sixth Edition. Chicago: Appraisal Institute, 2015. 36 Source: The Dictionary of Real Estate Appraisal, Sixth Edition, Chicago: Appraisal Institute, 2015. 37 Source: The Dictionary of Real Estate Appraisal, Sixth Edition. Chicago: Appraisal Institute, 2015. 38 Source: The Dictionary of Real Estate Appraisal, Sixth Edition. Chicago: Appraisal Institute, 2015.

Former Fairview Substation Addendum: Letter of Engagement

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Addendum: Letter of Engagement

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Former Fairview Substation Addendum: Experience Data

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Addendum: Experience Data

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Data

Theodore S. Jensen, MAI

9330 Vanguard Dr., Suite 201

Anchorage AK, 99507

P: 907.341.2230 F: 907.929.2260 Email: [email protected]


Managing Member

Background

Mr. Jensen has an extensive background in commercial real estate

appraisal and consulting. He has analyzed all common property types

as well as numerous special purpose properties throughout the State.

Operating primarily in Anchorage, Fairbanks and the Mat-Su Valley,

he has also appraised real estate in outlying areas, from King Cove to

Wrangell. Mr. Jensen is well acquainted with complex appraisal

situations such as government subsidized affordable housing,

proposed construction, underlying ground leases, and “go dark”

analyses. Beyond valuation, his real estate skills and knowledge

make him well suited for market research and analysis, feasibility

studies, property tax appeals, due diligence, site selection,

purchase/sale consultation, and risk assessment.

An Alaskan resident since 1992, Mr. Jensen graduated from the

University of Alaska Anchorage with Bachelor of Arts degrees in

both Economics and Criminal Justice in 1995. Since earning his

degrees, he has been active as both a private commercial appraiser

and, for several years, as a public appraiser with the Municipality of

Anchorage Assessor’s office.

Education

Real Estate Education Advanced Applications, AI

Advanced Income

Capitalization, AI

Advanced Sales

Comparison and Cost

Approaches, AI

Highest and Best Use

Market Analysis, AI

7-Hour USPAP Update

(current), AI

Uniform Standards of

Professional Appraisal

Practice (USPAP), AI

Business Practices and

Ethics, AI

Uniform Appraisal

Report Writing and Valuation

Analysis, AI

General Applications, AI

Basic Income Capitalization,

AI

Appraisal Principles, AI

Appraisal Procedures, AI

Subdivision Valuation, AI

Fundamentals of Separating

Real Property, Personal

Property and Intangible

Business Assets, AI

Forecasting Revenue, AI

Appraisal of Land, IAAO

Advanced Income Approach

Th

eod

ore

S.

Jen

sen

, M

AI



Anchorage AK, 99507


Standards for Federal Land

Acquisitions, AI

The Appraiser as an Expert

Witness: Preparation &

Testimony, AI

Litigation Appraising:

Specialized Topics and

Applications, AI

to Valuation, IAAO

Fundamentals of Mass

Appraisal, IAAO

Supervisory Appraiser /

Trainee Appraiser Course, AI

Review Theory – General, AI

College Education A.A., Business Administration, Frederick Community College

B.A., Economics, University of Alaska Anchorage

B.A., Criminal Justice, University of Alaska Anchorage

Employment History

Reliant, LLC (formerly

Integrated Realty Resources)

Managing Member, 2008 to Present, Anchorage, Alaska.

Howard and Wing Commercial Appraiser, 2000 to 2008, Anchorage, Alaska.

Municipality of Anchorage Senior Commercial Appraiser, 1998 to 2000, Anchorage, Alaska.

Kincaid & Riely LLC Research Analyst / Associate Appraiser, 1995 to 1998, Anchorage,

Alaska.

Designations, Certifications and Awards

State License’s / Certifications State of Alaska, Certified General Real Estate Appraiser, License

No. 545 (expires June 30, 2017).

Designations Mr. Jensen is one of roughly 6,000 individuals worldwide that have

earned the Appraisal Institute’s prestigious MAI designation (MAI

Designation No. 12532). The continuing education requirements

have been completed for the cycle ending December 31, 2018.

Organization Affiliations, Offices & Memberships

President, Alaska Chapter of the Appraisal Institute, 2011-2013

Vice President, Alaska Chapter of the Appraisal Institute, 2009-

2010

Secretary / Treasurer, Alaska Chapter of the Appraisal Institute,

2016

Secretary, Alaska Association of Assessing Officers, 1999

Education Committee Chair, Alaska Chapter of the Appraisal

Institute, 2014-2016

Member, BOMA Anchorage



Anchorage AK, 99507


Partial List of Clients

Our clients include:

· Alaska Native Organizations

· National Financial Institutions

· Alaska Financial Institutions

· Government Sector (Local, State and Federal)

· Legal Sector

· Private Sector

. Local/National Healthcare Providers

A more detailed list of clients and professional

references is available upon request.

Sample of Completed Assignments

Special Purpose Properties

Captain Cook Parking Garage, Anchorage AK

A.P.C. Wrangell Sawmill Facility, Wrangell AK

Tesoro / Burger King (proposed), Seward AK

Automatic Carwash (proposed), Seward AK

Auto Wash Express (proposed), Soldotna AK

Dragnet Fisheries Dock, Seward AK

St. Andrew Kim Church, Anchorage AK

Greek Orthodox Church, Anchorage AK

Peter Pan Seafoods Facility, King Cove AK

Ocean Beauty Seafoods Facility, Kodiak AK

Pacific Star Seafoods Facility, Kenai AK

Shoreside Petroleum Tank Farm, Seward AK

The Wharf, Ketchikan AK

Mt. McKinley Meat and Sausage Facility, Palmer AK

Bethel Fuels Tank Farm, Bethel AK

AGLAD Air Cargo Facility, Anchorage AK

DH Ports Cold Storage Facility, Unalaska AK

Subway Sports Center Ice Rink, Anchorage AK

AT&T Sports Pavilion, Anchorage AK

Aramark Chevron Stations, Cantwell / Healy / Nenana AK

Children’s World Montessori School, Anchorage AK

Northern Lights ABC School, Anchorage AK

Medical Properties

Alaska Surgery Center (proposed), Anchorage AK

Southcentral Foundation DOBH Building (proposed),

Anchorage AK

Valley Hospital Medical Office Building, Palmer AK

4200 Lake Otis Medical Office Building, Anchorage AK

Alaska Women’s Health Building, Anchorage AK

St. Elias Long Term Acute Care Hospital (proposed),

Anchorage AK

3600 Lake Otis Medical Office Building, Anchorage AK

Laurel Street Medical Office Condominiums, Anchorage

AK

Latouche Medical Center, Anchorage AK

Abbott Road Medical, Anchorage AK

Medical Park Condominiums, Anchorage AK

Muldoon Medical Plaza (proposed), Anchorage AK

HealthSouth Building, Anchorage AK

Anchorage Neighborhood Health Center, Anchorage AK

American Hyperbaric Medical Office Building (proposed),

Anchorage AK

Midtown Dental, Anchorage AK

Eagle River Medical Condos, Eagle River AK

Ketchikan Indian Corporation Medical Clinic, Ketchikan

AK

Hotel Properties

Holiday Inn Express (proposed), Anchorage AK

Al’s Alaskan Inn, Anchorage AK

Puffin Inn, Anchorage AK

Alaska Backpacker Inn, Anchorage AK

Frontier Hotel (proposed), Juneau AK



Anchorage AK, 99507


Grande Denali Hotel / Denali Alaskan Lodge, Denali AK

Comfort Inn, Fairbanks AK

MagTek Mancap, Deadhorse AK

Trail Lakes Lodge, Moose Pass AK

The Narrows, Ketchikan AK

Reluctant Fisherman Inn, Cordova AK

Multifamily / Condominium Properties

Highlander Apartments (32 units), Anchorage AK

Chugach and Diamond Willow Estates (56 units),

Anchorage AK

Jillian Square Apartments (356 units), Fairbanks AK

Brighton Park LIHTC (80 units - proposed), Anchorage

AK

Driftwood Apartments (39 units), Anchorage AK

Greenbriar Apartments (193 units), Anchorage AK

Central Park Apartments (69 units), Anchorage AK

College View Apartments (96 units), Anchorage AK

Diamond Willow Apartments (32 units), Anchorage AK

Quad Shot Luxury Condominiums (10 units - proposed),

Anchorage AK

Panoramic View Apartments (268 units), Anchorage AK

Sophie Plaza Apartments (355 units), Fairbanks AK

Wood River Park (63 units), Eagle River AK

Willow Woods Apartments (228 units), Fairbanks AK

Richardson Vista Apartments (406 units) - Subsidized Rent

Project, Anchorage AK

Ladera Villa (55 units), Anchorage AK

Arctic Sun Apartments (77 units), Anchorage AK

Bootlegger Cove Apartments (8 units), Anchorage AK

Rivers Edge Condominiums (42 units - proposed), Eagle

River AK

Lauren Creek Townhome Apartments (62 units),

Anchorage AK

The Glen Apartments (76 units) - Subsidized Rent Project,

Anchorage AK

Legacy Apartments (147 units), Anchorage AK

Strawberry Lane Apartments (184 units), Anchorage AK

Glenn-Muldoon Mobile Home Park (129 spaces),

Anchorage, AK

Olympic Subdivision (29 lots - proposed), Anchorage AK

Kathy ‘O Estates Mobile Home Park (79 spaces),

Anchorage AK

Covenant House R.O.P. Transitional Living, Anchorage,

AK

Grass Creek North LIHTC (52 units), Anchorage AK

Elmendorf Air Force Base Privatized Housing - Aurora

Phase II (1,194 units), Anchorage AK

Ft. Wainwright Privatized Housing (1,850 units), Fairbanks

AK

Ft. Greely Privatized Housing (126 units), Delta Junction

AK

Eielson Air Force Base Privatized Housing (possessory

interest, 934 units), Fairbanks AK

Industrial Properties

Brown Jug / Sadler’s Warehouse, Anchorage AK

ASRC Office Warehouse Facility, Anchorage AK

Puget Sound Pipe and Supply Warehouse, Anchorage AK

Alaska Fish and Farm Products Warehouse, Anchorage AK

Airport Business Park, Anchorage AK

Summit Paving Facility, Anchorage AK

Karakash Transfer Warehouse, Anchorage AK

Superior Plumbing Warehouse, Anchorage AK

Call’s Repair Garage (proposed), Eagle River AK

National-Oilwell Warehouse, Anchorage AK

Tri-Star Distributing Warehouse Expansion, Anchorage

AK

National Bank of Alaska Hangar, Anchorage AK

Wesco Warehouse, Anchorage AK

Alaska Power Systems, Anchorage AK

Reeve Air Motive Building, Anchorage AK

Keystone Distribution Warehouse, Anchorage AK

Chevron Service Station, Anchorage AK

Danza’s International Transfer Warehouse (now DHL),

Anchorage AK

Royal Celebrity Tours Bus Barn, Anchorage AK

Midtown Business Park, Anchorage AK

Polaris Retail/Warehouse (proposed), Eagle River AK

Odom Warehouse Properties, Anchorage AK

Hotwire Electric Office/Warehouse (proposed), Anchorage

AK

Fairbanks Waste Shop, Fairbanks AK

K&L Warehouse, Fairbanks AK

SKS Commercial Warehouse, Anchorage AK

Airline Support Warehouse, Anchorage AK

GE Supply Warehouse, Anchorage AK

Pacific Plumbing, Anchorage AK

AAA Fencing Warehouse (proposed), Anchorage AK

Northern Air Cargo Hangar, Anchorage AK

Former Bailey’s Warehouse, Anchorage AK



Anchorage AK, 99507


Pool Arctic Warehouse, Anchorage AK

Action Security Warehouse, Anchorage AK

Reeve Aleutian Airlines Hangar, Anchorage AK

General Mechanical Warehouse, Anchorage AK

Kenai Waste Facility, Kenai AK

Huffman Business Park (Buildings D, Q & S), Anchorage

AK

Schoon Street Warehouses, Anchorage AK

4000 West 50th Avenue Airport Transfer Warehouse,

Anchorage AK

Hultquist Homes Truss Manufacturing Plant, Anchorage

AK

Hultquist Homes Prefab Housing Facility (proposed),

Anchorage AK

Shaub Tires, Juneau AK

Capital Glass Warehouse, Anchorage AK

Animal Food Warehouse (proposed), Anchorage AK

Alaska Pacific Transfer Warehouse, Anchorage AK

Pacific Diversified International Warehouse, Anchorage

AK

250 Post Road Warehouse Facility, Anchorage AK

Lake-Aire Alaska Hangar, Anchorage AK

Pro Mech Hangar, Ketchikan AK

Arctic Imports Repair Shop, Anchorage AK

Global Rides Hangar, Anchorage AK

International Freight Terminal, Anchorage AK

Johnson’s Tire Service Distribution Facility - Denali Street,

Anchorage AK

Anchorage Distribution Center, Anchorage, AK

Denali Group Warehouse, Fairbanks, AK

AAA Moving Warehouses, Fairbanks, AK

Norcon Warehouse, Fairbanks AK

Arctic Couriers Warehouse, Fairbanks AK

Spenard Builders Supply, Anchorage AK

Freshwater Adventures Hangar, Dillingham AK

Central Mini Storage, Anchorage AK

Tudor Mini Storage, Anchorage AK

King Street Mini Storage, Anchorage AK

Best Storage South, Anchorage AK

Polar Heated Storage, Anchorage AK

Foothills Mini Storage, Anchorage AK

Retail Properties

Reeve Museum Building at the 5th Avenue Mall,

Anchorage, AK

Schucks Auto (proposed),Anchorage AK

Flooring America Building, Anchorage AK

Debenham Plaza, Anchorage AK

Muldoon Mall, Anchorage AK

Former Long’s Drug Store, Anchorage AK

Downtown Retail Rental Rate Analysis, Anchorage AK

Pippel Center, Eagle River AK

GCI Store (proposed), Anchorage AK

Olympic Center, Anchorage AK

Country Village Mall, Anchorage AK

Southtown Center (Diamond Pink Mall), Anchorage AK

College Mall, Anchorage AK

Tempura Kitchen Restaurant, Anchorage AK

DQ Grill ‘n Chill, Anchorage AK

Lone Star Restaurant, Anchorage AK

Red Robin, Anchorage AK

Red Robin, Wasilla AK

Applebees Restaurant, Anchorage AK

Sea Galley Restaurant, Anchorage AK

The Bridge Restaurant, Anchorage AK

Little Italy Restaurant, Anchorage AK

Firetap Restaurant, Anchorage AK

Dowling Park and Sell Facility, Anchorage AK

Diamond International, Skagway AK

Steadman Building, Ketchikan AK

Nye Frontier Ford Dealership, Wasilla AK

Red Diamond Center, Soldotna AK

Wayne’s Texas BBQ Restaurant (proposed), Anchorage

AK

Wasilla Shopping Center, Wasilla AK

Eagle River Plaza, Eagle River AK

UAS Bookstore, Auke Bay AK

Nugget Mall, Juneau AK

Lewis Chevrolet Dealership, Ketchikan AK

Hutchings Auto Dealership, Soldotna AK

Midas Auto, Anchorage AK

Office Properties

3230 C Street, Anchorage AK

3333 Denali Street, Anchorage AK

Fairbanks Office Building, Fairbanks AK

Blackstone Building, Anchorage AK

Alaska Housing Finance Corporation Building, Anchorage

AK



Anchorage AK, 99507


Solar Building, Anchorage AK

Peterson Tower, Anchorage AK

Eagle River Financial Center, Eagle River AK

Enstar Administrative Headquarters, Anchorage AK

Residential Mortgage Building (proposed), Anchorage AK

Centerpoint II Building (proposed), Anchorage AK

KeyBank Center, Anchorage AK

645 G Street, Anchorage AK

Fish and Game Headquarters, Anchorage AK

Nome Federal Building, Nome AK

Alutiiq Center (proposed), Anchorage AK

CBA Building, Anchorage AK

Greatland Office Building (360 Benson), Anchorage AK

KeyBank Plaza, Anchorage AK

188 West Northern Lights Building (proposed), Anchorage

AK

808 E Street, Anchorage AK

Resolution Tower, Anchorage AK

750 West 2nd Avenue, Anchorage AK

Former VECO Headquarters, Anchorage AK

Idaska Office Building, Anchorage AK

AVCP-RHA Headquarters, Bethel AK

PN&D Office Building Expansion, Anchorage AK

Alaska Public Radio Network Building, Anchorage AK

3000 C Street Office Complex, Anchorage AK

Midtown Business Center, Anchorage AK

Alaska Legal Center, Anchorage AK

Newcore Building, Anchorage AK

Credit Union 1 - 36th Avenue, Anchorage AK

Emerald Office Building, Anchorage AK

Inuit Office Building (4141 Ambassador), Anchorage AK

LIO Building, Anchorage AK

Bivin Plaza, Anchorage AK

AKI Building (1400 West Benson), Anchorage AK

Willoughby Office Building complex, Juneau AK

UAS Natural Sciences Research Lab, Juneau AK

JL Tower, Anchorage AK

Centerpoint West, Anchorage AK

Ketchikan Federal Building, Ketchikan AK

Petersburg Federal Building, Petersburg AK

Old Anchorage Federal Building, Anchorage AK

New Anchorage Federal Building, Anchorage AK

Miscellaneous

Ground Lease, Numerous Assignments, throughout Alaska

Vacant Land, Numerous Assignments, throughout Alaska

Surface Parking Lots, Anchorage AK

Subdivisions, Anchorage and Homer AK

Mendenhall Mall Ground Leases, Juneau AK

Alaska Economic Overview Analysis (for KeyBank)

Apartment Housing Study (for Anchorage Telephone

Authority)

Assessed Value Ratio Study (for Seafirst Bank), Anchorage

AK

A Commitment to Client Service



Phone: (907) 929-2226

Fax: (907) 929-2260



Rel

ian

t

A Foundation to Build On:

Vision

Integrity

Commitment

Performance

A Commitment to Client Service:

Quality Research & Analysis

Quality Presentation

Fast Turn Around Times

Competitive Fees

On Time Delivery

Solid Confidentiality

Extensive Valuation & Consulting Services:

Mortgage Financing

Market & Feasibility Analysis

Litigation & Arbitration Support

Sale & Lease Negotiation

Property Tax Consulting

Estate Planning / Documentation

Site Selection

Due Diligence

Investment Analysis

Market Research

Eminent Domain

Partial Interest Valuations

Extensive Market Knowledge:

Institutional

Hotels

Apartment & Condominiums

Medical

Affordable Housing

Senior Housing

Lumber & Sawmills

Shipyards & Marinas

Truck Stops & Travel Centers

Seafood Processing Plants

Right-of-Way / Condemnation

Industrial

Ground Leases

Office

Retail

Bio-Tech

Athletic Clubs

High-Tech

Vacant Land

Parking Garages

Movie Theatres

Wetland Banking/Mitigation



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